You are a speculator who sells a call option on Australian dollars for a premium of $.03 per unit, with an exercise price of $.86. The option will not be exercised until the expiration date, if at all. If the spot rate of the Australian dollar is $.78 on the expiration date, your net profit per unit is:.
a. -$0.02.
b. -$0.01.
c. $0.01.
d. $0.02.
e. none of the above.

e. none of the above.

Explanation:

Based on the scenario being described within the question it can be said that your net profit per unit is none of the above. This is because since you are selling and the exercise price was set at $0.86 then the price lowering to 0.78 means that you sold at a much higher price than market value, which leads to about 0.08 profit per unit.

answer; the nav calculated at the market close at 4: 00 pm new york time;