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What is the payoff if at the end of the options life

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Problem 1: A company buys a put option to sell A$30 million (with an exercise price of US$0.9000 per $A1). What is the payoff (expressed in A$) if at the end of the options life the exchange rate is US$0.8500 = A$1?

a) $A2.700 million
b) $A1.765 million
c) $A2.500 million
d) $A1.667 million
e) Zero

Reference no: EM132941063

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