Using the Data for the Problem, Assume That You Entered

question 39

Multiple Choice

Using the data for the problem, assume that you entered into an option with Goldman Sachs for one contract worth £75,000 at a premium of $.0325, a strike price of 162 and a brokerage fee of $25 to get into the option and also to exercise the option. Would you exercise the option?

• A) yes
• B) no
• C) It depends on the June 1 spot rate.
• D) This is not an appropriate situation for an option.

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Definitions:

Interference

A phenomenon in which one memory competes with or replaces another memory, making it less likely to be recalled.

Short-term Storage

The part of the memory system that is responsible for temporarily holding information.

Working Memory

The part of short-term memory that is responsible for temporarily holding and processing information necessary for cognitive tasks.

Active Processing

Active Processing is the cognitive act of engaging with information in a meaningful way to ensure its storage, understanding, and retrieval from memory.