Carl is a US option writer. In anticipation of a depreciation of the British pound from its current level of $1.50 to $1.45, he has written a call option with an exercise price of $1.51 and a premium of $.02. If the spot rate at the option's maturity turns out to be $1.54, what is Carl's profit or loss per unit (assuming the buyer of the option acts rationally)?
A) -$0.01
B) $0.01
C) -$0.04
D) $0.04
E) -$0.03

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The Answer of Carl is a US option writer. In anticipation of a depreciation of the British pound from its current level of $1.50 to $1.45, he has written a call option with an exercise price of $1.51 and a premium of $.02. If the spot rate at the option's maturity turns out to be $1.54, what is Carl's profit or loss per unit (assuming the buyer of the option acts rationally)?
A) -$0.01
B) $0.01
C) -$0.04
D) $0.04
E) -$0.03

Carl Is a US Option Writer