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

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