Question
8.7) Which three statements regarding options are true? A A EUR long put option is also a USD short put option B A short EUR
8.7) Which three statements regarding options are true? A A EUR long put option is also a USD short put option B A short EUR put option incorporates the right to sell EUR C A long EUR call option incorporates the obligation to buy EUR D The seller (writer) of an option has potentially unlimited gains. E The buyer (holder) of an option has potentially unlimited gains and limited losses F When used for hedging the potential gains from the option are used to compensate possible losses in the underlying transaction (receivable, payable). G Hedging can only be done with short options. H Options can have different strike prices and hence varying premiums Please elaborate and explain.
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