You are a speculator who sells a call option on Swiss francs for a premium of £0.04, with an exercise price of £0.42. The option will not be exercised until the expiration date, if at all. If the spot rate of the Swiss franc is £0.47 on the expiration date, your net profit per unit, assuming that you have to buy Swiss francs in the market to fulfil your obligation, is:
A) -£0.02.
B) -£0.01.
C) £0.01.
D) £0.02.
E) none of the above.

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The Answer of You are a speculator who sells a call option on Swiss francs for a premium of £0.04, with an exercise price of £0.42. The option will not be exercised until the expiration date, if at all. If the spot rate of the Swiss franc is £0.47 on the expiration date, your net profit per unit, assuming that you have to buy Swiss francs in the market to fulfil your obligation, is:
A) -£0.02.
B) -£0.01.
C) £0.01.
D) £0.02.
E) none of the above.

You Are a Speculator Who Sells a Call Option on Swiss