TABLE 8.1
Use the below mentioned table to answer following question(s).
April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts).
-Refer to Table 8.1. 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 8.1
Use the below mentioned table to answer following question(s).
April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts). 
-Refer to Table 8.1. 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 strike price of 1440 is typically expressed in terms of the currency's value, so $0.0088/£ is the correct interpretation of the option's price per pound.

TABLE 8.1 Use the Below Mentioned Table to Answer Following Question(s)