Question

April 19, 2025, British Pound Option Prices (cents per pound, 62,500 pound contracts).  The spot price is $1.228 / £.

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Option &	Strike		Calls				Puts
Underlying	Price	May	June	July		May	June	July
1448	1440	0.88	1.42	1.42		0.52	1.06	-----
1448	1450	0.42	1.02	-----		-----	-----	-----
1448	1460	0.20	0.68	0.72		-----	2.32	-----

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The exercise price of ________ giving the purchaser the right to sell pounds in June has a cost per pound of ________ for a total price of ________.

Group of answer choices

1450; 1.02 cents; $637.50.

1440; 1.42 cents; $887.50.

1460; 0.68 cents; $425.00.

1440; 1.06 cents; $662.50.

Answer 1

The answer is

The exercise price of 1440

giving the purchaser the right to sell pounds in June has a cost per pound of

1.06 for a total price of

62500*0.0106

= $662.5

Hence, the answer is

1440; 1.06 cents; $662.50.