34. You are operating an American company and have a future receivables in , you hedge with money market. You should A. Short a S future contract. B. borrow , convert to S, and invest S C. borrow $, convert to , and invest D. Buying a put option. 35. Yesterday, you entered into a futures contract to buy 125,000 at S1.50 per . Suppose the futures price closes today at $1.46. How much have you made/lost? A. You have made $5,000.00 B. You have lost $5,000.00 C. Depends on your margin balance D. You have lost $2,500.00 36. Boeing has a future payable 10 million in one year. They can use either forward contract for options to eliminate their risk exposure. According to the followin break-even point between option hedge and forward hedge? The U.S. interest rate: The U.K. interest rate: The spot exchange rate The forward exchange rate: $2.05/E (1-year maturity). The option premium (price): $0.018 per pound A. $2.068/ B. $2.077/ C. $2.145/ D. $2.032/ g information, which rate is the 6.00% per annum 6.50% per annum $1.80/t. 37. Find the value of a call option written on 100 with a strike price of $1.00 1.00. In one period there are two possibilities: the exchange rate will move up by 15 percent or down by 15 percent (i.e. $1.15-1.00 or $0.85-1.00). The U.S. risk-free rate is 5 percent over the period. The neutral probability of dollar depreciation is 2/3 and the risk-neutral probability of the dollar strengthening is 1/3. A. $9.5238 B. $0.0952 C. $O D. $3.1746 38. Yesterday, you entered into a futures contract to buy E62,500 at $1.75 per . Your initial performance bond is $2,400 and your maintenance level is $500. At what settle price will you get a demand for additional funds to be posted (margin call)? A. $1.5160 per . B. $1.208 per . C. $1.4268 per D. $1.7196 per