6 Which of the following is the most unlikely strategy for a U.S. firm that will be purchasing Swiss francs in the future and desires to avoid exchange rate risk (assume the firm has no offseting position in francs)? a. purchase a call option on francs b. obtain a forward contract to purchase francs forward c. sell a futures contract on francs. d. all of the above are appropriate strategies for the scenario described 7. If your firm expects the euro to substantially appreciate, it could speculate by euro call options oreuros forward in the forward exchange market a. selling: selling b. selling; purchasing d. purchasing: selling 8. A firm sells a currency futures contract, and then decides before the settlement date that it no longer wants to maintain such a position. It can close out its position by a. buying an identical futures contract b. selling an identical futures contract. c. buying a futures contract with a different settlement date. d. selling a futures contract for a different amount of currency e. purchasing a put option contract in the same currency. 9. You purchase a call option on pounds for a premium of S.03 per unit, with an exercise price of $1.64; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.65, your net profit per unit is: a. $.03 b. $.02 C. -$.01 d. $.02 e. none of the above 10. You purchase a put option on Swiss francs for a premium of $.02, with an exercise price of $.61 The option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $.58, your net profit per unit is: a. -$.03. b. -$.02 .-$01 d. $.02. e. $.01 1 A call option on Australian dollars has a strike (exercise) price of $.56. The present exchange rate is $ 59. This call option can be referred to as: a. in the money b. out of the money c. at the money d. at a discount