Question: Exhibit 16.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Option Type Currency Canadian dollar Contract Size 50,000 Canadian dollars Expiry April Strike Call Put

Exhibit 16.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM

Option Type Currency Canadian dollar
Contract Size 50,000 Canadian dollars
Expiry April
Strike Call Put
$0.815 $0.0118
$0.820 $0.0068

Refer to Exhibit 16.1. How much must an investor pay for one call option contract?

a. $590
b. $815
c. $680
d. $340
e. $625

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