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Emma sold a call option on Singapore dollars for A$0

Finance

Emma sold a call option on Singapore dollars for A$0.01 per unit. The exercise price was A$0.85, and the spot rate at the maturity was A$0.90. Assume Emma did not obtain Singapore dollars until the option was exercised. Also assume that there are 60,000 units in a Singapore dollar option. What was Emma’s net profit on the call option?

  A.

A$ -2400

  B.

A$ 2400

  C.

A$ 3000

  D.

A$ -3000

  E.

A$ -6000

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