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Billy buys a call option on the Euro. Billy has the obligation to buy the Euro when the option expires in two months. True False
Billy buys a call option on the Euro. Billy has the obligation to buy the Euro when the option expires in two months. True False Question 6 (2.5 points) Paddy's Pub imports casks of whiskey from Ireland. Paddy's receives an invoice to pay 3,000 euros in 2 months. In order to hedge currency risk, Paddy should: buy a call on the euro buy a put on the euro sell a call on the euro sell a forward on the euro Question 7 (2.5 points) B-Boy Corporation is a U.S. firm that invoices some of its exports in Russian rubles. It expects the ruble to weaken. In order to hedge the exchange rate risk on those exports. B-Boy should: sell puts on the ruble sell calls on the ruble buy futures on the ruble sell futures on the ruble
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