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Given the following data, detail the hedging strategy using Options Contracts Net Exposure 50,873,878 Contract: Euro September $1.25 Puts @ $.0255/Euro Size: 125,000 Euros Spot
Given the following data, detail the hedging strategy using Options Contracts
Net Exposure 50,873,878
Contract: Euro September $1.25 Puts @ $.0255/Euro
Size: 125,000 Euros
Spot rate: $1.2307/ Euro
6 month forward rate: $1.2485/ Euro
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