[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 Capital Structure: The blend of financing from debt and equity that a company employs to finance its growth and ongoing activities. Bank Financing: The process of obtaining funds for business activities, personal needs, or other purposes from a bank. Operational Decision: An Operational Decision involves choices made by an organization's management regarding day-to-day operations that affect its performance and efficiency. Primary Market: The financial market segment where new securities are issued and sold for the first time, often through public offerings or private placements.