On 19 April Following are the Spot Rates Spot EUR/USD 1.2000           USD/INR 44.8000 Following are the quotes for European Type Options Currency Pair Call/Put Strike Price Premium Expiry Date EUR/USD Call 1.2000 $0.035 July 19 EUR/USD Put 1.2000 $0.04 July 19 USD/INR Call 44.8000 Rs.0.12 Sep 19 USD/INR Put 44.8000 Rs.0.04 Sep 19 If a dealer is Bullish on USD. He should a. Sell EUR/USD Put Option b. Buy EUR/USD Call Option c. Buy EUR/USD Put Option d. None of the above

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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On 19 April Following are the Spot Rates

Spot EUR/USD 1.2000           USD/INR 44.8000

Following are the quotes for European Type Options

Currency Pair

Call/Put

Strike Price

Premium

Expiry Date

EUR/USD

Call

1.2000

$0.035

July 19

EUR/USD

Put

1.2000

$0.04

July 19

USD/INR

Call

44.8000

Rs.0.12

Sep 19

USD/INR

Put

44.8000

Rs.0.04

Sep 19


If a dealer is Bullish on USD. He should
a.
Sell EUR/USD Put Option
b.
Buy EUR/USD Call Option
c.
Buy EUR/USD Put Option
d.
None of the above
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