A Call Option to Buy £10,000 at a Strike Price

question 5

Multiple Choice

A call option to buy £10,000 at a strike price of $1.80 = £1.00 is equivalent to

• A)a put option to sell $18,000 at a strike price of $1.80 = £1.00.
• B)a call option on $18,000 at a strike price of $1.80 = £1.00.
• C)a put option on £10,000 at a strike price of $1.80 = £1.00.
• D)none of the above

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Definitions:

Marketplace

A public space or service where goods and services are exchanged or sold, either physically or through digital platforms.

Cooperative Advertising

A marketing arrangement in which the manufacturer and the retailer share the expense of advertising.

Manufacturer's Products

Items produced by a company for sale, often characterized by their brand, quality, and functions.

Local Advertising

Advertising strategies and campaigns targeted at the local market or community, often to promote local businesses and services to nearby consumers.