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Apex Corporation must pay its Japanese supplier 125 million in three months. It is thinking of buying 20 yen call options (contract size is 6.25

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Apex Corporation must pay its Japanese supplier 125 million in three months. It is thinking of buying 20 yen call options (contract size is 6.25 million) at a strike price of $0.00800 in order to protect against the risk of a rising yen. The premium is 0.015 cents per yen. Which of the following statements is correct in relation to this call option contract? 1) The option contract becomes worthless if the spot price at the time of expiry of this contract is $0.00810/ 2) Apex remains indifferent if the spot price at the time of expiry of this contract is $0.00810/ 3) The option is deep in-the-money if the spot price at the time of expiry of this contract is $0.008150/ 4) Apex exercises the contract if the spot price at the time of expiry of this contract is $0.007900/\

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