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1. Are the following statements True or False? Why? (a) A currency forward contract and a currency option are both reducing the risk of currency

1. Are the following statements True or False? Why?

(a) A currency forward contract and a currency option are both reducing the risk of currency fluctuation and they are not different from each other.

(b) Compared with an investment in IBM shares, an investment in a European call option on IBM shares is riskier.

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