The Premium on a Pound Put Option Is

question 159

Multiple Choice

The premium on a pound put option is $.04. The spot rate and the exercise price is $1.52. The spot rate at the time of this option expiration is expected to be $1.51. The speculators could profit by:

• A) writing a put option.
• B) buying a put option.
• C) buying a call option
• D) writing a call option and buying a call option simultaneously.

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Definitions:

Path-Goal Leadership Theory

A theory which states that a leader's behavior is contingent to the satisfaction, motivation, and performance of their subordinates, and involves adjusting leadership styles based on situational demands and follower characteristics.

Directive Leadership

A management style where leaders closely control and instruct the work of their employees, often dictating the what, how, and when of tasks.

Path-Goal Theory

A leadership theory that suggests leaders adjust their behaviors and styles to align with employee motivations, obstacles, and goals to enhance performance and satisfaction.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is contingent to the satisfaction, motivation, and performance of her or his subordinates.