You Are a Speculator Who Sells a Put Option on Canadian

question 140

Multiple Choice

You are a speculator who sells a put option on Canadian dollars for a premium of $.03 per unit, with an exercise price of $.86. The option will not be exercised until the expiration date, if at all. If the spot rate of the Canadian dollar is $.78 on the expiration date, your net profit per unit is:

• A) -$.08.
• B) -$.03.
• C) $.05.
• D) $.08.
• E) none of the above

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Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Neurons

Basic units of the nervous system that process and transmit information through electrical and chemical signals.

Interneurons

Neurons that transmit signals between sensory and motor neurons, playing critical roles in reflexes and neuronal circuits.

Myelin Sheets

Protective coverings around nerve fibers in the brain, spinal cord, and peripheral nerves, made of myelin, which help in the rapid transmission of electrical signals.