Value a 1-Year Call Option Written on £10,000 with an Exercise

question 39

Multiple Choice

Value a 1-year call option written on £10,000 with an exercise price of $2.00 = £1.00.The spot exchange rate is $2.00 = £1.00; The U.S.risk-free rate is 5% and the U.K.risk-free rate is also 5%.In the next year,the pound will either double in dollar terms or fall by half (i.e.u = 2 and d = ½) .Hint: H = ⅔.

• A)$6,349.21
• D)None of the above

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Definitions:

Lungs Clear

A term often used during physical examinations to indicate that there are no signs of infection, obstruction, or abnormalities in the lung sounds as heard through auscultation.

Collaborative Nursing

A healthcare approach where nurses work together with other healthcare professionals to provide comprehensive care to patients, emphasizing teamwork and communication.

Interdependent Intervention

A nursing action that requires collaboration with other healthcare professionals to be executed effectively.

Dependent Intervention

Healthcare actions that require an order, prescription, or supervision from a licensed healthcare professional before they can be carried out.