Suppose That the Exchange Rate Is €1

question 53

Multiple Choice

Suppose that the exchange rate is €1.25 = £1.00.Options (calls and puts) are available on the London exchange in units of €10,000 with strike prices of £0.80 = €1.00.Options (calls and puts) are available on the Frankfurt exchange in units of £10,000 with strike prices of €1.25 = £1.00.For a French firm to hedge a £100,000 receivable,

• A)buy 10 call options on the pound with a strike in euro.
• B)buy 10 put options on the pound with a strike in euro.
• C)buy 8 call options on the euro with a strike in pounds.
• D)buy 10 put options on the pound with a strike in euro and buy 8 call options on the euro with a strike in pounds.

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Definitions:

Genetic Component

Refers to the part of an individual's traits or conditions that are determined by genes, encompassing aspects like inherited characteristics, susceptibility to diseases, and physical attributes.

Serotonin

A neurotransmitter that plays a key role in mood regulation, digestion, sleep, and other bodily functions.

Genetic Components

The elements of an organism's genetic makeup that determine inherited characteristics and predispositions.

ADHD

Attention Deficit Hyperactivity Disorder, a neurological disorder characterized by problems with focus, hyperactivity, and impulsiveness.