1.

Suppose that a put option on the euro with a strike of $1.15 has a per-euro premium of $0.023.

In an arbitrage-free market, which of the following premia are possible for an otherwise identical put option with a strike of $1.20?

Group of answer choices

$0.023

$0.073

$0.043

$0.003

7.Hasbro currently has a sizeable position in currency forwards that are long foreign currencies. Which could explain the rationale for this decision?

Group of answer choices

They are taking a speculative bet that the dollar will appreciate

They have accounts payable in foreign currencies

They expect to have significant sales in foreign countries

They expect weak U.S. sales when the dollar is weak.