You Purchase a Put Option on Swiss Francs for a Premium

question 126

Multiple Choice

You purchase a put option on Swiss francs for a premium of $.02, with an exercise price of $.61. The option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $.58, your net profit per unit is:

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

---

Definitions:

Democracy

A form of governance where authority is granted to the citizens, who either govern themselves or select representatives through open elections.

Gettysburg

A significant site of a 1863 battle during the American Civil War, known for its pivotal role in turning the tide of the war in favor of the Union and for President Lincoln's subsequent address.

Public Policies

Strategies and actions developed and implemented by governments to address public issues and regulate societal functions.

The State

An organized political community living under a single system of government, recognized as sovereign or governing over a defined territory and population.