Question: If you sold a put option contract (contract size is 31,250) with exercise price of $1.50/ and premium of $0.15/, what is your expectation regarding
If you sold a put option contract (contract size is 31,250) with exercise price of $1.50/ and premium of $0.15/, what is your expectation regarding future spot rate?
a. You think the future spot exchange rate will be higher than 1.50
b. You think the future spot exchange rate will be less than 1.50
c. You think the future spot exchange rate will be 0.
d. You think the future spot exchange rate will be 1.30.
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