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The Premium on a Pound Put Option Is

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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:


Definitions:

Lipid Wax

A type of lipid that is solid at room temperature, consisting of long-chain fatty acids and alcohols.

Synthetic Detergent

Man-made soap-like substances that can emulsify oils and hold dirt in suspension in water, used for cleaning.

Unsaturated Fatty Acid

A type of fatty acid with one or more double bonds in the hydrocarbon chain, which can affect the fluidity of cell membranes.

Triglyceride

A type of fat or lipid found in blood, formed from one molecule of glycerol and three fatty acids.

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