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A Call Option on UK Pounds Has a Strike Price

Question 22

Multiple Choice
A call option on UK pounds has a strike price of $2.05/£ and a cost of $0.02. What is the break-even price for the option? A) $2.03/£ B) $2.07/£ C) $2.05/£ D) The answer depends upon if this is a long or a short call option.

A call option on UK pounds has a strike price of $2.05/£ and a cost of $0.02. What is the break-even price for the option?


A) $2.03/£
B) $2.07/£
C) $2.05/£
D) The answer depends upon if this is a long or a short call option.

Correct Answer:

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