[Solved] A trader uses a stop-loss strategy to hedge a short position in a three-month call option with a strike price of 0.7000 on an exchange rate.The current exchange rate is 0.6950 and value of the option is 0.1.The trader covers the option when the exchange rate reaches 0.7005 and uncovers (i.e.,assumes a naked position)if the exchange rate falls to 0.6995.Which of the following is NOT true? A) The exchange rate trading might cost nothing so that the trader gains 0.1 for each option sold B) The exchange rate trading might cost considerably more than 0.1 for each option sold so that the trader loses money C) The present value of the gain or loss from the exchange rate trading should be about 0.1 on average for each option sold D) The hedge works reasonably well Sleep: A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, and inhibition of nearly all voluntary muscles. Depressive Disorder: A group of conditions characterized by persistent feelings of sadness and hopelessness and a lack of interest or pleasure in nearly all activities, often accompanied by physical symptoms and impaired functioning. Impulsive Behaviour: Actions performed suddenly without apparent thought, reflecting a lack of control over emotional or cognitive processes. Insomnia: A common sleep disorder characterized by trouble falling and/or staying asleep, affecting a person's overall health and quality of life.