You Purchase a Call Option on Pounds for a Premium

question 109

Multiple Choice

You purchase a call option on pounds for a premium of $.03 per unit, with an exercise price of $1.64; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.65, your net profit per unit is:

• A) -$.03.
• B) -$.02.
• C) -$.01.
• D) $.02.
• E) none of the above

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