Multiple Choice
Find the hedge ratio for a put option on €10,000 with a strike price of $15,000. In one period the exchange rate (currently S($/€) = $1.50/€) can increase by 60% or decrease by 37.5% .
A) -15/49
B) 8/13
C) -5/13
D) 15/49
Correct Answer:
Verified
Correct Answer:
Verified
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