A Call Option on UK Pounds Has a Strike Price

question 25

Multiple Choice

A call option on UK pounds has a strike price of $2.05/£ and a cost of $0.02. What is the break-even price for the option?

• A) $2.03/£
• B) $2.07/£
• C) $2.05/£
• D) The answer depends upon if this is a long or a short call option.

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Definitions:

Outer Layers

Refers to the external surfaces or coverings of an object, area, or the most superficial parts of something.

Brain Development

The process involving growth and differentiation of the brain from infancy through adulthood, influencing cognitive abilities, motor skills, and emotional behaviors.

Atrophy

The wasting away or decrease in size of an organ or tissue in the body due to disease, injury, or lack of use.

Brain Development

The process of growth and change in the brain's structure, function, and capacity throughout the lifespan.