You purchase a call option on dollars for a premium of £0.02 per unit, with an exercise price of £0.57; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is £0.58, your net profit per unit is:
A) £0.00.
B) -£0.02.
C) -£0.01.
D) £0.02.
E) none of the above

Question

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The Answer of You purchase a call option on dollars for a premium of £0.02 per unit, with an exercise price of £0.57; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is £0.58, your net profit per unit is:
A) £0.00.
B) -£0.02.
C) -£0.01.
D) £0.02.
E) none of the above

You Purchase a Call Option on Dollars for a Premium