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Can anybody answer the question and explain it ? thx a lot 5) You pay $3.25 for a call option on Luther Industries that expires
Can anybody answer the question and explain it ? thx a lot
5) You pay $3.25 for a call option on Luther Industries that expires in three months with a strike price of $40.00. Three months later, at expiration, Luther industries is trading at $41.00 per share. Your profit per share on this transaction is closest to? A) $1.00 B) - $2.25 C) - $1.00 D) $2.25 6) Which of the following is NOT true regarding a letter of credit? A) The importer applies to its local bank for the issuance of a letter of credit. B) The exporter applies to its local bank for the issuance of a letter of credit. C) The importer's bank cuts a sales contract based on its assessment of the creditworthiness of the importer. D) The importer and exporter agree on a transaction. Page 3 of 14 7) A currency swaps allows a multinational corporation to change the A) principal and interest rate on its debt B) nature of its debt from a fixed interest rate to a floating interest rate C) forward rate on contracts it secures to hedge exchange rate risk D) currency of denomination of its debts 8) The broker at Deutsche Bank quotes bid- ask rates of 104.15- 30/$. What would be its direct asking price for yen if the bank's /$ ask rate is .6550? A) 164.25A B) .006281 C) 159.24A D) .0061A
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