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9. C onsider you sell a six-month American call option on GBP10,000 with a strike price of $1.50 GBP. The option premium is s0.003/ GBP.

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9. C onsider you sell a six-month American call option on GBP10,000 with a strike price of $1.50 GBP. The option premium is s0.003/ GBP. The current spot exchange rate is $1.40/ GBP. Wili the call option be exercised? If yes, what would be your payoff as a seller? a. $1,030 b. $1,000 c. $970 d. $30 10. Transaction exposure is defined as: itivuitu of realirrd demestic currency values of the firm's contra

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