The Current Spot Exchange Rate Is $1

question 2

Multiple Choice

The current spot exchange rate is $1.55 = €1.00 and the three-month forward rate is $1.60 = €1.00.Consider a three-month American call option on €62,500 with a strike price of $1.50 = €1.00.If you pay an option premium of $5,000 to buy this call,at what exchange rate will you break-even?

• A)$1.58 = €1.00
• B)$1.62 = €1.00
• C)$1.50 = €1.00
• D)$1.68 = €1.00

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Local Area Networks, which are networks covering a small geographic area, like a home, office, or building, for computers and devices to communicate within.

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The delivery of computing services over the internet, allowing for on-demand access to computing resources without direct active management by the user.

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The various components (hardware, software, data) and capabilities (processing power, storage) that are available for use in computational tasks.