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Euro Spot Today ($/Euro) Euro Forward Rate ($/Euro) Price of call with $1.30/1 strike or exercise price Price of put with $1.30/1 strike or
Euro Spot Today ($/Euro) Euro Forward Rate ($/Euro) Price of call with $1.30/1 strike or exercise price Price of put with $1.30/1 strike or exercise price $1.30/1 $1.25/1 $.02 (or 2 cents) $.03 (or 3 cents) If the euro were to depreciate to $1.20/1 euro, which strategy would have been most profitable? Entering a future contract to sell euros at the forward rate Buying a call option on the euro Buying a put option on the euro O Writing (selling) a put option on the euro
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