You are a speculator who sells a put option on Canadian dollars for a premium of $.03 per unit, with an exercise price of $.86. The option will not be exercised until the expiration date, if at all. If the spot rate of the Canadian dollar is $.78 on the expiration date, your net profit per unit is:
A) -$.08.
B) -$.03.
C) $.05.
D) $.08.
E) None of these are correct.

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The Answer of You are a speculator who sells a put option on Canadian dollars for a premium of $.03 per unit, with an exercise price of $.86. The option will not be exercised until the expiration date, if at all. If the spot rate of the Canadian dollar is $.78 on the expiration date, your net profit per unit is:
A) -$.08.
B) -$.03.
C) $.05.
D) $.08.
E) None of these are correct.

You Are a Speculator Who Sells a Put Option on Canadian