Find the Hedge Ratio for a Put Option on €10,000

question 59

Multiple Choice

Find the hedge ratio for a put option on €10,000 with a strike price of $15,000. In one period the exchange rate (currently S($/€) = $1.50/€) can increase by 60% or decrease by 37.5% .

• A)-15/49
• B)8/13
• C)-5/13
• D)15/49

Recognize the difference between equitable remedies and remedies at law.

Understand the role and authority of administrative agencies.

Comprehend the hierarchy of laws in the United States and the supremacy of the U.S. Constitution.

Identify the parties in a legal action and their roles.

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Definitions:

P/E Ratio

The price-to-earnings ratio, a valuation metric for assessing a company's current share price relative to its per-share earnings.

Financial Statements

Documents that report on a company's financial performance and situation, including the balance sheet, income statement, and cash flow statement.

Common Shares

A type of equity ownership in a corporation, with holders typically having voting rights and potentially receiving dividends, reflecting a share in the company's success or failure.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders.