Question
If you believe the present spot rate of exchange of $0.5376/DM will fall (i.e. the $/DM will decrease or the DM will depreciate), which of
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If you believe the present spot rate of exchange of $0.5376/DM will fall (i.e. the $/DM will decrease or the DM will depreciate), which of the following would likely yield you the largest speculative gain?
buy a put option on DM
write a put option on US$
write a call option on DM
buy a call option on DM
none of the above
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Financial Markets And Institutions
Authors: Jeff Madura
6th Edition
0324162618, 978-0324162615
