TABLE 7.1
Use the table to answer following question(s).
April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts).

-Refer to Table 7.1. The May call option on pounds with a strike price of 1440 means:
A) $88/£ per contract.
B) $0.88/£.
C) $0.0088/£.
D) none of the above

Question

TABLE 7.1
Use the table to answer following question(s).
April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts).
 
-Refer to Table 7.1. The May call option on pounds with a strike price of 1440 means:
A) $88/£ per contract. 
B) $0.88/£. 
C) $0.0088/£. 
D) none of the above

Quizplus · Accepted Answer

The correct interpretation of a call option with a strike price of 1440 is $0.0088/£, as options on currencies are typically quoted in terms of the currency per unit, and in this case, it implies $0.0088 per British pound.

TABLE 7.1 Use the Table to Answer Following Question(s)