From the Perspective of the Writer of a Put Option

question 79

Multiple Choice

From the perspective of the writer of a put option written on €62,500. If the strike price is $1.55/€, and the option premium is $1,875, at what exchange rate do you start to lose money?

• A)$1.52/€
• B)$1.55/€
• C)$1.58/€
• D)None of the above

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