An Investor Takes a Call Option on Euro Futures Contracts

question 64

Multiple Choice

An investor takes a call option on euro futures contracts at strike price of $0.65.If the market price of euro futures reduces to $0.62,the call option will:

• A)be "in the money".
• B)be exercised before the option expires.
• C)go unexercised.
• D)increase upside profits.
• E)increase downside risk.

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Definitions:

Infant Sucking

A reflex action in newborns and infants for feeding and comfort, involving the rhythmic drawing into the mouth and suction of liquids.

Learned Behaviors

Actions or reactions that individuals acquire through experience and interaction with the environment.

Homeostasis

Homeostasis is the process by which a living organism or cell maintains a stable internal environment despite changes in external conditions.

Staying The Same

Maintaining an unchanged state or position over a period of time.