You purchase a call option on pounds for a premium of $.03 per unit, with an exercise price of $1.64; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.65, your net profit per unit is:
A)-$.03.
B)-$.02.
C)-$.01.
D)$.02.
E)none of the above

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The Answer of You purchase a call option on pounds for a premium of $.03 per unit, with an exercise price of $1.64; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.65, your net profit per unit is:
A)-$.03.
B)-$.02.
C)-$.01.
D)$.02.
E)none of the above

You Purchase a Call Option on Pounds for a Premium