Mã đề 239

Q1: You sold one silver future contract at $3 per ounce. What would be your profit (loss) at
maturity if the silver spot price at that time is $4.10 per ounce? Assume the contract size is 5,000
ounces, and there are no transactions costs
A. $5.50 loss B. $5,500 profit
C. $5,500 loss D. $5.50 profit
Q2: A trader who has a ______ position in wheat futures believes the price of wheat will ______
in the future.
A. long; decrease B. long; stay the same
C. long; increase D. short; increase
Q3: If the bid price of the USD/GBP is 1.1123 and spread = 0.0090. What is the offer price
A. 1.1123 B. 1.1113
C. 1.1213 D. None of above
Q4: In a future contract, the futures price is
A. determined by the futures exchange.
B. determined independently by the provider of the underlying asset.
C. determined by the buyer and the seller when the delivery of the commodity takes place.
D. determined by the buyer and the seller when they initiate the contract.
Q5: In the direct quote, what is the ask price of a currency pair?
A. Is the bid price
B. The price at which we can sell the FC currency
C. The price at which we can buy the FC currency.
D. The price at which we can buy the LC currency
Q6: If a firm based in the Netherlands wishes to avoid the risk of exchange rate movements and
is due to receive USD100,000 in 90 days (EUR/USD), it could:
A. enter into a 90-day forward purchase of US dollars for euros;
B. purchase US dollars 90 days from now at the spot rate;
C. enter into a 90-day forward sale of US dollars for euros;
D. sell US dollars 90 days from now at the spot rate.
Q7: A call option with a strike price of $55 can be bought for $4 (premium fee). What will be
your net profit if you sell the call option (writer) and the stock price is $52 when the call expires?
A. $3 B. -$7
C. -$4 D. $4
Q8: What is the main difference between a forward contract and a futures contract?
A. A futures contract is standardized and traded on an exchange, while a forward contract is
customized and traded over the counter.
B. A futures contract can only be used for commodities, while a forward contract can be used for
any asset.
C. A forward contract is settled daily, while a futures contract is settled at the end of the contract
period.
D. A futures contract requires an upfront payment, while a forward contract does not.
Q9: The spot Singapore dollar is quoted bid S$1.7160 = US$1, ask S$1.7200 = US$1. What is
the direct quote in the United States to the nearest four decimal points?
A. US$0.5814 = S$1 bid, US$0.5828 = S$1 ask
B. S$1.7160 = US$1 bid, S$1.7200 = US$1 ask
C. US$0.5828 = S$1 bid, US$0.5815 S$1 ask
D. 2.3310% premium
Q10: If direct spot quotations in New York and London were $1.5995-1.6000 and £0.6250-
0.6254, respectively, arbitrage profits per $1m would be:
A. $327 B. 0
C. $313 D. $640
Q11: You sold one oil future contract at $70 per barrel. What would be your profit (loss) at
maturity if the oil spot price at that time was $73.12 per barrel? Assume the contract size is 1,000
barrels, and there are no transaction costs.
A. $3.12 profit B. none of the above.
C. $31.20 profit D. $31.20 loss
Q12: An agreement between a buyer and a seller to immediately exchange a specific asset for
payment of cash is a
A. Option contract B. Future contract
C. Forward contract D. Spot contract
Q13: Which of the following is potentially obligated to sell an asset at a predetermined price?
A. A call buyer B. a put writer
C. a put buyer D. a call writer
Q14: An American put option allows the holder to
A. potentially benefit from a stock price increase.
B. buy the underlying asset at the striking price on or before the expiration date.
C. buy the underlying asset at the striking price on or before the expiration date and potentially
benefit from a stock price increase.
D. sell the underlying asset at the striking price on or before the expiration date.
Q15: A US citizen traveling to Europe finds that the exchange rate has changed from 1 USD =
0.9 EUR to 1 USD = 0.8 EUR. This means that:
A. The US dollar has depreciated against the euro
B. The euro has appreciated against the US dollar
C. The US dollar has appreciated against the euro
D. The euro has depreciated against the US dollar
Q16: What is the bid-ask spread in the currency market?
A. The difference between the highest and lowest prices of a currency pair during a trading
session.
B. The difference between the buying and selling prices of a currency pair at any given time.
C. The difference between the bid price and the ask price of a currency pair.
D. The difference between the opening and closing prices
Q17: To exploit an expected increase in interest rates, an investor would most likely.
A. take a long position in Treasury bond futures.
B. sell Treasury bond futures.
C. take a long position in wheat futures.
D. take a short position in wheat futures.
Q18: Which option type allows the user to exercise the option any time prior to expiration?
A. American option B. Asia Option
C. Europe Option D. Africa Option
Q19: An agreement between a buyer and a seller to immediately exchange a specific asset for
payment of cash is a
A. Future contract
B. Forward Contract
C. Option Contract
Q20: Suppose the exchange rates for the following currencies are:
USD/JPY: 110
USD/EUR: 0.85
What is the EUR/JPY cross rate?
A. 129.4117 B. 129.4118
C. 93.5000 D. None of Above
Q21: Actual exchange market participants includete _______
A. banks B. companies and individuals
C. governments D. all of the above
Q22: Currency futures contracts are normally available ________.
A. in a pre-determined amount for a specified maturity date
B. in flexible maturity dates
C. tailored to the desire of the buyer
D. tailored to the desire of the seller
Q23: A country's currency that weakened relative to another country's currency by more than
that justified by the differential in inflation is said to be in terms of PPP.
A. undervalued B. overvalued
C. undercompensating D. overompensating
Q24: Suppose you observe the following exchange rates: €l = $1.50; ¥120=$1.00. Calculate the
euro-yen exchange rate.
A. ¥133.33 = €1.00 B. ¥80 = €1.00
C. €1 = £2.50 D. €1.00 = ¥180
Q25: A currency put option gives the ________ the underlying currency.
A. buyer the right to buy but not obligation
B. buyer the right to sell but obligation
C. seller the right to sell but not obligation
D. buyer the right to sell but not obligation
Q26: Suppose you observe the following exchange rates: €1 = $1.25; £1 = $2.00. Calculate the
euro-pound exchange rate.
A. €1 = £1.60 B. €1 = £0.625
C. €2.50 = £1 D. €1 = £2.50
Q27: A US company is expected to receive £100,000 in 120 days. If the company wants to
minimize the risk of foreign exchange, then it would
A. buy British pounds forward
B. sell British pounds in the current spot market
C. buy British pounds 120 days from now
D. sell British pounds forward
Q28: The International Monetary Market in the Chicago Mercantile Exchange trades _____.
A. bonds B. currency futures
C. US Treasury Bills D. stocks
Q29: Suppose the spot ask exchange rate, Sa($ǀ£), is $1.90 = £1.00 and the spot bid exchange
rate, Sb($ǀ£), is $1.89 = £1.00. L: you were to buy $10,000,000 worth of British pounds and then
sell them five minutes later, how much of your $10,000,000 would be "eaten" by the bid-ask
spread?
A. $52,631.58 C. $1,000,000
B. $52,910.05 D. $100,000
Q30: Assume the implied PPP rate of exchange of Mexican Pesos per U.S. dollar is 8.50
according to the Big Mac Index. Further, assume the current exchange rate is Peso 10.80/$1.
Thus, according to PPP and the Law of One Price, at the current exchange rate the dollar is:
A. There is not enough information to answer this question.
B. undervalued.
C. correctly valued.
D. overvalued.
Q31: The USD/AUD spot exchange rate is 1.60 and the USD/CHF is 1.25. The CHF/AUD cross
exchange rate is _______.
A 0.7813 B. 1.2800
C. 2.0000 D. 0.3500
Q32: Suppose that the current exchange rate is €1.00 = $1.60. The indirect quote, from the U.S.
perspective is
A. None of the above B. €0.6250 = $1.00.
C. €1.60 = $1.00. D. €1.00 = $1.60.
Q33: Consider a U.S. importer desiring to purchase merchandise from a German exporter
invoiced in euros, at a cost of €512,100. The U.S. importer will contact his U.S. bank (where of
course he has an account denominated in U.S. dollars) and inquire about the exchange rate,
which the bank quotes as €1.0242/$1.00, The importer accepts this price, so his bank will
______ the importer's account in the amount of _______.
A. credit, €512,100 B. debit, $500,000
C. credit, $500,000 D. debit, €512,100
Q34: Exchange rate pass-through may be defined as:
A. the degree to which the prices of imported and exported goods change as a result of exchange
rate changes.
B. the PPP of lesser-developed countries.
C. the bid/ask spread on currency exchange rate transactions.
D. the practice by Great Britain of maintaining the relative strength of the currencies of the
Commonwealth countries under the current floating exchange rate regime.
Q35: Which of the following instruments is a financial derivative?
A. all of the above B. currency forward
C. currency futures D. currency swap
Q36: If the $/€ bid and ask prices are $1.50/€ and $1.51/€, respectively, the corresponding €/S
bid and ask prices are
A. €0.6667 and €0.6623.
B. $1.51 and $1.50.
C. €0.6623 and €0.6667.
D. cannot be determined with the information given.
Q37: Suppose you observe the following exchange rates: €1 = $1.50; £1 =$2.00. Calculate the
euro-pound exchange rate.
A. €1.3333 = £1.00 B. €1.25 = £1.00
C. £1.3333 = €1.00 D. €3.00 = £1
Q38: The theory of purchasing power parity says that _____.
A. the exchange rate will adjust to reflect changes in price levels of two countries
B. the inflation rate is greater than the interest rate
C. the inflation rates in two countries are unrelated
D. the interest rate is greater than the inflation rate
Q39: The dollar-euro exchange rate is $1.25 = €1.00 and the dollar-yen exchange rate is ¥100 =
$1.00. What is the euro-yen cross rate?
A. ¥125 = €1.00 B. ¥1.00 = €125
C. ¥1.00 = €0.80 D. None of the above
Q40: The main objective of hedgers in currency futures markets make a profit is to _____.
A. make a profit
B. make sure that foreign bills are collected
C. protect against exchange risk
D. protect against political risk
Q41: A cross rate is an exchange rate between _____.
A. the Mexican peso and the euro
B. The US dollar and the Japanese yen
C. any two non-home currencies
D. the domestic currency and a foreign currency
Q42: A strike price in currency options markets is the specified exchange rate at which the
_______.
A. option can be sold
B. option can be exercised
C. options can be bought
D. futures options can be sold
Q43: Speculators in currency futures markets are _______.
A. covered by options contracts
B. greatly exposed to exchange rate risk
C. usually making profits
D. covered by future contracts
Q44: Suppose that the current exchange rate is €0.80 = $1.00. The direct quote, from the U.S.
perspective is
A. €0.80 = $1.00. B. £1.00 = $1.80.
C. €1.00 = $1.25 D. None of the above
Q45: The dollar-Swiss France exchange rate is quoted as CHF/USD 0.7648/0.7652 and the
dollar-euro exchange rate is quoted at EUR/USD 1.4000/1.4200. What is the BID cross-
exchange rate for Swiss Francs priced in euro? Hint: Find the price that a currency dealer will
pay in euro to buy Swiss francs.
A. €0.5389/CHF B. €0.5463/CHF
C. €0.5386/CHF D. €0.5466/CHF
Q46: The foreign exchange market is referred to as a market where one country's currency is
exchanged for another currency. The currency exchange is usually made through the following
methods.
A. buyers and sellers of foreign exchange meet at a physical location.
B. A and D
C. buyers and sellers of foreign exchange meet through a telephone network
D. buyers and sellers of foreign exchange meet through computer communications
Q47: The world's largest foreign exchange trading center is
A. New York. B. London.
C. Tokyo. D. Hong Kong
Q48: Find the no-arbitrage cross exchange rate. The dollar-euro exchange rate is quoted as $1.60
= €1.00 and the dollar-pound exchange rate is quoted at $2.00 = £1.00.
A. €1.25/£1.00 B. £1.25/€1.00
C. $1.25/£1.00 D. €0.80/£1.00
Q49: The exchange is $1.05/€. Which one is corrected?
A. EUR/USD = 1.05 B. GBP/USD = 1.05
C. USD/EUR = 1.05 D. USD/GBP = 1.05
Q50: Margin requirements in currency futures markets are a form of _____.
A. transaction cost B. brokerage fee
C. collateral deposit D. compensation
 Mã đề 240
Q1: Using futures contracts to transfer price risk is called:
A. Arbitrage B. Diversifying.
C. Speculating. D. Hedging
Q2: The current market price of a share of AT&T stock is $50. If a call option on this stock has a
strike price of $45, the call
A. Do exercise and sell for a higher price than if the market price of AT&T stock is $45.
B. Do not do anything
C. Do not exercise and sells for a higher price than if the market price of AT&T stock is $45.
D. Liquidated at the stock price is $40
Q3: A US citizen traveling to Europe finds that the exchange rate has changed from 1 USD = 0.9
EUR to 1 USD = 0.8 EUR. This means that:
A. The US dollar has appreciated against the euro
B. The euro has depreciated against the US dollar
C. The US dollar has depreciated against the euro
D. The euro has appreciated against the US dollar
Q4: What is the primary purpose of a forward contract?
A. To facilitate the short-selling of assets
B. To speculate on future price movements
C. To hedge against future price fluctuations
D. To increase liquidity in the market
Q5: A trader who has a ______ position in wheat futures believes the price of wheat will
_______ in the future.
A. long; decrease B. long; stay the same
C. short; increase D. long; increase
Q6: If the bid price of the USD/GBP is 1.1123 and spread =0.0090. What is the offer price
A. 1.1123
C. 1.1113
B. 1.1213
D. None of above
Q7: An American put option allows the holder to
A. buy the underlying asset at the striking price on or before the expiration date.
B. sell the underlying asset at the striking price on or before the expiration date.
C. potentially benefit from a stock price increase.
D. buy the underlying asset at the striking price on or before the expiration date and potentially
benefit from a stock price increase.
Q8: Which option type allows the user to exercise the option any time prior to expiration?
A. Europe Option B. Asia Option
C. American option D. Africa Option
Q9: In the direct quote, what is the ask price of a currency pair?
A. The price at which we can buy the LC currency.
B. Is the bid price
C. The price at which we can sell the FC currency.
D. The price at which we can buy the FC currency.
Q10: A change from Rs 140 = $2 to Rs 60 = $1 indicated Rs is...
A. Appreciated B. Depreciated
C. Deficit D. Neither
Q11: In a future contract, the futures price is
A. determined by the buyer and the seller when the delivery of the commodity takes place.
B. determined independently by the provider of the underlying asset.
C. determined by the futures exchange.
D. determined by the buyer and the seller when they initiate the contract.
Q12: What is a cross rate?
B. The exchange rate between two currencies that are not the base currency in a given country.
A. The exchange rate between two currencies in the same country
D. The exchange rate between two commodities.
C. The exchange rate between two currencies in different time zones.
Q13: If the Indian rupee depreciates against the US dollar, what will happen to the price of
Indian exports to the US?
A. The price will increase
B. The price will remain the same
C. It is impossible to predict the effect on prices
D. The price will decrease
Q14: You sold one silver future contract at $3 per ounce. What would be your profit (loss) at
maturity if the silver spot price at that time is $4.10 per ounce? Assume the contract size is 5,000
ounces, and there are no transactions costs
B. $5.50 loss
A. $5.50 profit
D. $5,500 profit
C. $5,500 loss
Q15: A put option on a stock is said to be out of the money if
A. the exercise price is higher than the stock price.
B. the exercise price is equal to the stock price.
C. the exercise price is less than the stock price.
D. the price of the put is higher than the price of the call.
Q16: The spot Singapore dollar is quoted bid S$1.7160 = US$1, ask S$1.7200 = US$1. What is
the direct quote in the United States to the nearest four decimal points?
A. 2.3310% premium
B. US$0.5814 = S$1 bid, US$0.5828 = S$1 ask
C. S$1.7160 = US$1 bid, S$1.7200 = US$1 ask
D. US$0.5828 = S$1 bid, US$0.5815 = S$1 ask
Q17: A call option with a strike price of $55 can be bought for $4 (premium fee). What will be
your net profit if you sell the call option (writer) and the stock price is $52 when the call expires?
A. -S4 B. $3
C. S4 D. -$7
Q18: Suppose the exchange rates for the following currencies are:
USD/JPY: 110 USD/EUR: 0.85
What is the EUR/JPY cross rate?
A. 129.4117 B. 129.4118
C. 93.5000 D. None of Above
Q19: Which of the following is potentially obligated to sell an asset at a predetermined price?
A. a put buyer B. a put writer
C. A call buyer D. a call writer
Q20: If the USD/JPY exchange rate is 110 and the EUR/USD exchange rate is 1.20, what is the
cross rate between the EUR/JPY?
A. 132 B. 0.008
C. 0.007 D. 0.88
Q21: Suppose that the current exchange rate is £1.00 = $2.00. The indirect quote, from the U.S.
perspective is
A. £1.00 = $2.00. B. £1.00 = $0.50.
C. £0.50 = $1.00. D. None of the above
Q22: As a rule, when the interest rate of the foreign currency is greater than the interest rate of
the local currency,
A. the outright forward rate is more than the spot exchange rate.
B. the outright forward rate is less than the spot exchange rate
C. the currency will trade at a premium in the forward contract.
D. none of the above
Q23: Suppose you observe the following exchange rates: €1 = $1.60; £1 = $2.00. Calculate the
euro-pound exchange rate.
A. €1.25 = £1.00 B. £1.3333 = €1.00
C. €1.3333 = £1.00 D. €3.00 = £1
Q24: A currency call option gives the _________.
A. buyer the right to buy the underlying currency
B. seller the right to sell the underlying currency
C. broker the right to buy the underlying currency
D. seller the right to buy the currency futures contracts
Q25: The buyer and the seller in currency future markets agree on ________.
A. a future delivery date
B. the price to be paid
C. the quantity of the currency
D. all of the above
Q26: When a currency trades at a premium in the forward market
A. the exchange rate is less than one dollar.
B. the exchange rate is more than one dollar (e.g. €1.00 = $1.28)
C. the forward rate is more than the spot rate.
D. the forward rate is less than the spot rate.
Q27: Organized exchanges trade the following futures instruments: ________.
A. currency futures of any maturity
B. standardized currency futures
C. currency futures of any size
D. currency futures sold in any currency
Q28: When a currency trades at a discount in the forward market
A. the forward exchange rate is less than one dollar (e.g. €1.00 =$0.928).
B. the forward rate is less than the spot rate.
C. the forward rate is more than the spot rate.
D. the exchange rate is less than it was yesterday
Q29: Relative to the spot price the forward price will be
A. usually less than or more than the spot price more often than it is equal to the spot price.
B. usually equal to the spot price.
C. usually more than the spot price.
D. usually less than the spot price.
Q30: Which of the following is not a function of a commercial bank in the foreign exchange
market?
A. they determine exchange rates
C. they help reduce foreign exchange risk
B. they buy and sell foreign exchange
D. they operate the payment mechanism
Q31: The dollar-Swiss France exchange rate is quoted as CHF/USD 0.7648/0.7652 and the
dollar-euro exchange rate is quote at EUR/USD 1,4000/1.4200. What is the BID cross-exchange
rate for Swiss Francs priced in euro? Hint: Find the price that a currency dealer will pay in euro
to buy Swiss francs.
B. €0.5463/CHF
A. €0.5389/CHF
C. €0.5466/CHF Call
D. €0.5386/CHF
Q32: Consider a U.S. importer desiring t to purchase merchandise from a German exporter
invoiced in euros, at a cost of €512,100. The U.S. importer will contact his U.S. bank (where of
course he has an account denominated in U.S. dollars) and inquire about the exchange rate,
which the bank quotes as €1.0242/$1.00. The importer accepts this price, so his bank will
______ the importer's account in the amount of _______.
A. debit, $500,000 B. credit, €512,100
C. debit, €512,100 D. credit, $500,000
Q33: _________ states that differential rates of inflation between two countries tend to be offset
over time by an equal but opposite change in the spot exchange rate.
A. The International Fisher Effect
B. Relative Purchasing Power Parity
C. The Fisher Effect
D. Absolute Purchasing Power Parity
Q34: The world's largest foreign exchange trading center is
A. Tokyo. B. London.
C. New York. D. Hong Kong.
Q35: Which of the following instruments is a financial derivative?
A. all of the above B. currency swap
C. currency forward D. currency futures
Q36: Find the no-arbitrage cross exchange rate. The dollar-euro exchange rate is quoted as $1.60
A. $1.25/£1.00 B. £1.25/€1.00
= €1.00 and the dollar-pound exchange rate is quoted at $2.00 = £1.00.
C. €1.25/£1.00 D. €0.80/£1.00
Q37: Suppose you observe the following exchange rates: €1 = $1.25; £1 = $2.00. Calculate the
euro-pound exchange rate.
A. €1 = £0.625 B. €2.50 = £1
C. €1 = £1.60 D. €1 = £2.50
Q38: The spot market
A. involves the almost-immediate purchase or sale of foreign exchange.
B. involves the sale of futures, forwards, and options on foreign exchange.
C. takes place only on the floor of a physical exchange.
D. all of the above.
Q39: The forward market
A. none of the above
B. involves contracting today for the future purchase or sale of foreign exchange at the spot rate
that will prevail at the maturity of the contract.
C. involves contracting today for the right but not obligation to the future purchase or sale of
foreign exchange at a price agreed upon today.
D. involves contracting today for the future purchase or sale of foreign exchange at a price
agreed upon today.
Q40: Differences between the futures market and the forward market include _______.
A. price range B. maturity
C. size of contract D. all of the above
Q41: A cross rate is an exchange rate between _______.
A. The US dollar and the Japanese yen
B. the domestic currency and a foreign currency
C. any two non-home currencies
D. the Mexican peso and the euro
Q42: A currency put option gives the ________ the underlying currency.
A. buyer the right to buy but not obligation
B. seller the right to sell but not obligation
C. buyer the right to sell but not obligation
D. buyer the right to sell but obligation
Q43: Currency futures contracts are normally available ________.
A. in flexible maturity dates
B. tailored to the desire of the buyer
C. tailored to the desire of the seller
D. in a pre-determined amount for a specified maturity date
Q44: The main objective of hedgers in currency futures markets is to ________.
A. protect against exchange risk
B. make sure that foreign bills are collected
C. make a profit
D. protect against political risk
Q45: Suppose you observe the following exchange rates: €1 = $1.50; £1 = $2.00. Calculate the
euro-pound exchange rate.
A. £1.3333 = €1.00 B. €1.3333 = £1.00
C. €3.00 = £1 D. €1.25 = £1.00
Q46: Assume the implied PPP rate of exchange of Mexican Pesos per U.S. dollar is 8.50
according to the Big Mac Index. Further, assume the current exchange rate is Peso 10.80/$1.
Thus, according to PPP and the Law of One Price, at the current exchange rate the dollar is:
A. undervalued.
B. overvalued.
C. correctly valued.
D. There is not enough information to answer this question.
Q47: Exchange rate pass-through may be defined as:
A. the practice by Great Britain of maintaining the relative strength of the currencies of the
Commonwealth countries under the current floating exchange rate regime.
B. the PPP of lesser-developed countries.
C. the bid/ask spread on currency exchange rate transactions.
D. the degree to which the prices of imported and exported goods change as a result of exchange
rate changes.
Q48: The forward market of foreign exchange offers contracts ______.
A. which are available in a pre-determined amount
B. which have a standardized maturity date
C. tailored to meet the needs of the buyers and sellers
D. which are normally standardized
Q49: The USD/AUD spot exchange rate is 1.60 and the USD/CHF is 1.25. The CHF/AUD cross
exchange rate is _____.
A. 1.2800
C. 0.7813
B. 2.0000
D. 0.3500
Q50: A country's currency that weakened relative to another country's currency by more than
that justified by the differential in inflation is said to be in terms of PPP.
A. undervalued B. overcompensating
C. overvalued D. undercompensating
DELASOL- An American company has concluded a turbine sale to Crown-A British corporation
for GBP 30,000,000 in 25th March, 2019. The payment is due in 30th July, 2019 . With the
current sport rate GBP/USD 1.2980/1.3000, DELASOL would like to earn minimum acceptable
margin at USD 38,670,000. Below this amount, DELASOL would be losing money. As the
results, its CFO-Mr. Ricardo decided to using derivatives to hedge the transaction risk with 20%
using forward, 20% using option, 40% using future contract and the remaining uncovered. Based
on the given information, answer the listed questions:
Dayton-Crown contract's information
Money market rate RUK=1.00-2.00%pa RUS=1.5-2.5%pa
June OTC Option Strike: $1.4950 Premium: 1.5% for 25%
amount of money
WACC=10%
Future contract (GBP contract: Enter at $1.3680 Liquidate at $1.310
62,500 GBP each)
30th July-spot rates GBP/USD 1.3135/1.3255

Note: 1 year =360 days

*Forward contract
a) What rate should Ricardo use to convert GBP to USD in this contract? Show calulation (0.25
mark)
b) Calculate the amount of USD receipt based on the hedging strategy. (0.75 mark)
*Future contract
a) Will Ricardo take short or long position? Would he loss or get profit? (0.25 mark)
b) Calculate the amount of USD receipt based on the hedging strategy. (0.75 mark)
*Option
a) Calculate the cost of option. Exercise or not? Explain (0.5 mark)
b) Calculate the amount of USD receipt based on the hedging strategy. (0.5 mark)
*Contract: calculating the total amount of USD Dayton will receive