USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 103

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 16.1. If the spot rate at expiration is $0.75 and the put option was purchased, what is the dollar gain or loss?

• A) $0
• B) $200 loss
• C) $200 gain
• D) $3160 gain
• E) $1187 loss