Company's treasurer decides to go long on a currency put option to
A) gain potential unlimited profit if the spot price is less than the strike price.
B) limit potential loss to a maximum equivalent of the strike price.
C) limit potential loss to the premium equivalent.
D) because it has a gut feeling that the underlying asset currency will appreciate.

Question

Quizplus · Accepted Answer

Going long on a currency put option involves purchasing the option, which limits the potential loss to the premium paid for the option.

Company's Treasurer Decides to Go Long on a Currency Put