9. a) Assume that the current exchange rate gives 10 kroner for one euro. The interest rate in euros next year is 50 per cent, while the interest rate in Norwegian kroner is 0 per cent. What is the price of a forward contract for one euro in one year?

9b)

Which statement about options is correct?

Choose one option:

1. A combination of call options and bonds will be able to give the same payout as stock and put options

2. The value of an option is equal to the value of the underlying share

3. Options are only profitable if the share price exceeds the "strike price"

4. It is always profitable to trigger an option

O 10 O 12 O 15 6.67