USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 4

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 16.1. If the spot rate at expiration is $0.85 and the put option was purchased, what is the dollar gain or loss?

• A) $340 loss
• B) $125 gain
• C) $750 gain
• D) $750 loss
• E) $200 loss

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Definitions:

Psychopath

A phrase commonly referring to an individual diagnosed with Antisocial Personality Disorder, noted for their absence of empathy and engagement in manipulative or damaging actions.

Sadistic

Pertains to the tendency to derive pleasure from inflicting pain, suffering, or humiliation on others.

Cunning

Exhibiting ingenuity, skill, or craftiness in achieving one's ends through indirect, deceptive, or underhanded means.

Charismatic

Describes a person possessing a compelling attractiveness or charm that can inspire devotion in others, often seen in leadership contexts.