​If You Expect the Euro to Depreciate, It Would Be

question 160

Multiple Choice

​If you expect the euro to depreciate, it would be appropriate to ____ for speculative purposes.

• A) ​buy a euro call and buy a euro put
• B) ​buy a euro call and sell a euro put
• C) ​sell a euro call and sell a euro put
• D) ​sell a euro call and buy a euro put

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Definitions:

Positive Externalities

Benefits that are enjoyed by a third-party or society as a result of an economic transaction.

Producing Firm

An entity or company involved in the creation of goods or services to be offered to consumers.

Decision Makers

Individuals or groups responsible for making choices that determine the course of actions to be followed.

Efficient

The property of resource allocation where it is impossible to make any one individual better off without making at least one individual worse off.