Call Premium = C = $ 0.11 per pound, Strike Price of Call = $ 1.73 = K and Actual Spot Price at Maturity = S = $ 1.73
Call Payoff = (S - K) = (1.73 - 1.73) = $ 0
Net Profit = Call Payoff - Call Premium = 0 - 0.11 = - $ 0.11
Hence, the correct option is (A)
le sue University FIL 20 Coooolatility Services x Free Stock Charts Stock Quel x RM 182.22...
You bought British pound call option at a premium of $0.11 per unit. The exercise price is $1.73. In three months (right before your option expires), you can buy British pounds for $1.73 per unit in the spot market. What will be your net profit? OA.-50.11 . B. $0 OC. $0.09 OD. $0.20
You bought British pound call option at a premium of $0.11 per unit. The exercise price is $1.73. In three months (right before your option expires), you can buy British pounds for $1.93 per unit in the spot market. What will be your net profit? OA $0.11 OB. $0 OC. $0.09 D. $0.20 Reset Selection
Question 1 ol s 2 Points You bought British pound call option at a premium of $0.11 per unit. The exercise price is $1.73. In three months (right before your option expires), you can buy British pounds for $1.53 per unit in the spot market. What will be your net profit? A. -$0.11 B. $0 OC. $0.09 D. $0.20