1. A put option on Canadian dollars with a strike price of $.60 is purchased by a speculator for a premium of $.03 per unit. If the Canadian dollar’s spot rate is $.55 at the time the options is exercised, what is the net profit per unit to the speculator? (a) $0.20 (b) $0.00 (c) $0.03 (d) $0.05 2. A call option on Canadian dollars with a Strike price of $.60 is purchased by a speculator for a premium of $.05 per unit. If the Canadian dollar’s spot rate is $.65 at the time the options is exercised, what is the net profit per unit to the speculator? (a)$0.03 (b) $0.05 (c) $0.02 (d) $0.00
1. A put option on Canadian dollars with a strike price of $.60 is purchased by a speculator for a premium of $.03 per unit. If the Canadian dollar’s spot rate is $.55 at the time the options is exercised, what is the net profit per unit to the speculator? (a) $0.20 (b) $0.00 (c) $0.03 (d) $0.05 2. A call option on Canadian dollars with a Strike price of $.60 is purchased by a speculator for a premium of $.05 per unit. If the Canadian dollar’s spot rate is $.65 at the time the options is exercised, what is the net profit per unit to the speculator? (a)$0.03 (b) $0.05 (c) $0.02 (d) $0.00
Chapter5: Currency Derivatives
Section: Chapter Questions
Problem 19QA
Related questions
Question
MCQ & True/false : International
1. A put option on Canadian dollars with a strike price of $.60 is purchased by a speculator for a premium of $.03 per unit. If the Canadian dollar’s spot rate is $.55 at the time the options is exercised, what is the net profit per unit to the speculator?
(a) $0.20
(b) $0.00
(c) $0.03
(d) $0.05
2. A call option on Canadian dollars with a Strike price of $.60 is purchased by a speculator for a premium of $.05 per unit. If the Canadian dollar’s spot rate is $.65 at the time the options is exercised, what is the net profit per unit to the speculator?
(a)$0.03
(b) $0.05
(c) $0.02
(d) $0.00
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