Question

You sold an option whose MTM profits look like the picture below. What is the premium per unit that you charged your client? If the answer is A,B C, or D, simply type the respective letter in the answer box. If the answer is E, write down the correct answer and the unit of measurement.

Question 11 10 pts You sold an option whose MTM profits look like the picture below. What is the premium per unit that you charged your client? If the answer is A,B C, or D, simply type the respective letter in the answer box. If the answer is E, write down the correct answer and the unit of measurement. 240,000.00 172,452.00 -175,512.00 Page 9 56.84660 59.74630 A. 3.0 USD/unit B.2.5 USD/unit C. 1.2 USD/unit D. There is not enough information to answer the question E. None of the above

A. 3.0 USD/unit

B. 2.0 USD/unit

C. 1.2 USD/unit

D. There is not enough information to answer the question

E. None of the above________________________

Answer 1

Total option perice = $250,000 Som the graph) in graph) pay off Change 122,452 - (-175, 912) (fore the - $347, 964 se corty price - 59.74630 - 56.84660 (from the graph) And, Change - $2.8997 342 964 No. of units = 120,000 units 2.8997 have' Thus, we 2 su, ovo ferice per uit 120,000 Б 2.) USD/mit (option