A Call Option on Euros Is Written with a Strike

question 67

Multiple Choice

A call option on euros is written with a strike price of $1.30/euro. Which spot price maximizes your profit if you choose to exercise the option before maturity?

• A) $1.20/euro
• B) $1.25/euro
• C) $1.30/euro
• D) $1.35/euro

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Definitions:

Product Knowledge

Understanding and information about a product's features, benefits, and use, which is crucial for effective selling and customer support.

Need-Payoff Question

A question asked by a seller to make a potential buyer consider the positive effects or benefits of purchasing a product or service.

SPIN Approach

A sales strategy that involves asking Situation, Problem, Implication, and Need-payoff questions to understand a prospect's needs and offer solutions.