Suppose That You Have Written a Call Option on €10,000

question 46

Multiple Choice

Suppose that you have written a call option on €10,000 with a strike price in dollars. Suppose further that the hedge ratio is ½. Which of the following would be an appropriate hedge for a short position in this call option?

• A)Buy €10,000 today at today's spot exchange rate.
• B)Buy €5,000 today at today's spot exchange rate.
• C)Agree to buy €5,000 at the maturity of the option at the forward exchange rate for the maturity of the option that prevails today .
• D)Buy the present value of €5,000 discounted at i€ for the maturity of the option.
• E)Both c and d would work.
• F) None of the above

Comprehend the neural pathway of vision and hearing from sensory organs to the brain.

Recognize the characteristics and properties of sounds and how they are processed and perceived.

Understand the structure, function, and importance of inner ear components in hearing and balance.

Understand the concept of price discrimination and its types (first-degree, second-degree, third-degree).

---

Definitions:

Cohesion

The act of forming a unified whole, often used to describe the sense of solidarity and togetherness among members of a group or community.

Feudal Societies

Societal structures in medieval Europe where the nobility held lands from the Crown in exchange for military service, and vassals were tenants of the nobles, while the peasants were obligated to live on their lord's land and give him homage, labor, and a share of the produce.

Estate System

A form of social stratification where rights and duties are ascribed based on hereditary nobility, clergy, and commoners, often related to feudalism.

Middle Ages

A period in European history from the 5th to the late 15th centuries, marking the transition from classical to modern times.