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QUESTION 7 Now assume that instead of taking a position in the put option one year...

QUESTION 7

  1. Now assume that instead of taking a position in the put option one year ago, you sold a futures contract on 100,000 euros with a settlement date of one year. What was the forward rate one year ago?

1.00000 points   

QUESTION 8

  1. What is the total gain from this contract?

1.00000 points   

QUESTION 9

  1. If the future exchange rate is higher than the spot rate, then we expect the spot rate to decrease.

    True

    False

1.00000 points   

QUESTION 10

  1. The lower the spot rate relative to the strike price, the more valuable a put option is.

    True

    False

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Answer #1

One ld a put oplien on loom expnation one 240- Spot-State-usas 우 1:20 o to oday the eurio he do Was So the spat saate dupheetatea fun12053 41.152 - es Ans 8 드우. D . C) 24 Total gainヲ $ 0.024 X-100,000 usie eX . Id) The lowes the abot- Hata ou la -lure to daiko the mori valuable the put optier that the 아tum will be exeacMed

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