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Question
A put option on Japanese yen is written with a strike price of 95.00/$. Which spot exchange rate will maximize your profit if you choose to exercise the option?
a. 85.00/$
b. 90.00/$
c. 100.00/$
d. 115.00/$
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Considering the internal balance in an economy, which of the following could lead to lower interest rate and higher income?
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In foreign exchange forecasting, what is a good forecast?
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A U.S. firm has a 1 million payment due to a Dutch firm in 90 days. The current spot rate is $1.00 per euro, and the 90-day forward rate is $1.11. Ben forecasts that the spot rate in 90 days will be $0.99. Jerry forecasts that the spot rate will be $1.12 in 90 days. The actual spot rate in 90 days turns out to be $1.10. Whose advice, between Ben and Jerry, will save the companys money?
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