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5. From the perspective of the writer of a put option written on 62,500. If the strike price is $1.12/, and the option premium is
5. From the perspective of the writer of a put option written on 62,500. If the strike price is $1.12/, and the option premium is $2,500, at what exchange rate do you break-even. a. $1.11/ b. $1.08/ c. $1.16/ d. None of the above 6. ABC Bank (seller) has made a three against six Forward Rate Agreement (FRA), with XYZ Bank (buyer). Assume that the: Notional Amount = $4,000,000 Settlement Rate (SR) = 5% Agreed Rate (AR) = 6% Actual number of days in the three-month agree hent period = 91 Since SR
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