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
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
Section: Chapter Questions
Problem 1PS
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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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