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Business, 28.12.2019 06:31 martinezzz2294

Suppose that instead of using a forward contract, you consider using options. a one-year call option to buy euros at a strike price of $1.25/€ is trading for $0.10/€. similarly a one year put option to sell euros at a strike price of $1.25/€ is trading for $0.10/€. to hedge the risk of your profits, should you buy or sell the call or the put?

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Suppose that instead of using a forward contract, you consider using options. a one-year call option...

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