Question: Below is a chart with profit/loss on the vertical axis, and the $/ exchange rate on the horizontal axis. The solid line shows the profit/loss

Below is a chart with profit/loss on the vertical axis, and the $/ exchange rate on the horizontal axis. The solid line shows the profit/loss schedule for a:

Question 8 options:

put option in isolation (e.g. used for speculating that the pound will depreciate)

None of the above

covered call option (a call option is used as a hedge)

covered put option (a put option is used as a hedge)

Below is a chart with profit/loss on the vertical axis, and the

Profit/Loss Option strike option value->0 forekop GBP/USD 1.5191 Break even point 190 Option+trade cancel 1.50

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