SFG Corp. (a US MNC) is seeking to purchase a large March call at $1.3: a Outline

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SFG Corp. (a US MNC) is seeking to purchase a large March call at $1.3:

a Outline the circumstances that would explain SFG’s need for a call option.

b SFG finds the premium to be too expensive. Using the table in Question 10, explain how the premium can be eliminated and the ‘cost’ of doing so.

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