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answer both questions pleasr Download A All Page > of 4 a. increase; increase; decrease b. decrease; increase; decrease c. increase; decrease; increase d. decrease;

answer both questions pleasr image text in transcribed
Download A All Page > of 4 a. increase; increase; decrease b. decrease; increase; decrease c. increase; decrease; increase d. decrease; decrease; increase 5. (2pts) If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and the US firm is paying euro 100,000 in 30 days, it could a. Set up a 30-day forward contract to buy euro. b. Set up a 30-day forward contract to sell euro. c. Set up a 60-day forward contract to buy euro. d. Set up a 60-day forward contract to sell euro. 6. (2pts) The greater exercise rate, the will be the premium of a call option on this currency, and the will be the premium of a put option on this currency, other things are equal. A. greater; lower B. greater; greater C. lower; greater D. lower; lower we hae a strike (or exercise) rate of $1.48/BP

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