Question

You have entered in a put option contract on British pound at a price of $0.04 per British pound. When the option was exercised the dollar was selling of 0.63 British pound. Compute your net profit from the option if the exercise price was $1.80 and size of option is 50.000 a. SS.634.92 b. Pound 8.634.92 c. 556.500 d. Pound 56,500​

Answer 1

Answer:

“This model is blue. It's plastic. And it's attractive".

Correct sequential order of adjectives –

(a) It's an attractive, blue, plastic model.

(b) It's a blue, attractive, plastic model.

(c) It's a plastic, blue, attractive model.

(d) It's a

Answer 2

Answer:

option a is correct

Explanation:

Intrinsic value of put option= Strike price- Market price

Profit= Intrinsic value- Option price

Given,

Market price at the time of exercise= £0.63/$ or, 1/0.63= $1.587301587/£

Strike price of option= $1.80/£

Option price= $0.04

Plugging the inputs,

Profit per Pound= 1.80-1.587301587-0.04= 0.172698413

Also given,

Size of option= 50,000

Net Profit per contract= Profit per pound* Number of units per contract

=0.172698413*50000= $8,634.92

Answer is the option (a) given.