Multiple Choice
A company holds put options for €1,000 with a strike price of $1.25/€, purchased for $20. The exchange rate declines to $1.22/€. The company
A) Loses $50 on the put options
B) Loses $20 on the options
C) Gains $10 on the put options
D) Gains $30 on the put options
Correct Answer:
Verified
Correct Answer:
Verified
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