The Premium on a Pound Put Option Is

Multiple Choice

The premium on a pound put option is $.04. The spot rate and the exercise price is $1.52. The spot rate at the time of this option expiration is expected to be $1.51. The speculators could profit by:

A) writing a put option.
B) buying a put option.
C) buying a call option
D) writing a call option and buying a call option simultaneously.