What Is the Same as 100 Call Options to Buy

question 2

Multiple Choice

What is the same as 100 call options to buy one unit of currency A with currency B at a strike price of 1.25?

• A) 100 call options to buy one unit of currency B with currency A at a strike price of 0.8
• B) 125 call options to buy one unit of currency B with currency A at a strike price of 0.8
• C) 100 put options to sell one unit of currency B for currency A at a strike price of 0.8
• D) 125 put options to sell one unit of currency B for currency A at a strike price of 0.8

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Definitions:

Waiver

An express or implied renunciation of a right or claim.

Novation

The substitution of parties to an agreement, or the replacement of one agreement by another agreement.

Valid Tender

An offer of payment for goods or services that, by law, cannot be refused by the creditor if the debtor intends to discharge the debt.

Tender Of Payment

is an offer to pay a debt or obligation, specifically in a form that is legally recognized and acceptable.