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In order to hedge the foreign currency risk you buy a put option on by paying a premium of AED 2 with rise price of

In order to hedge the foreign currency risk you buy a put option on by paying a premium of AED 2 with rise price of AIDA 10 for 90 days, the days the spot prices EDR 13. Marks 1+1+1=3) Required: a. What is the payoff for the buyer of the option? b. What is the profit/loss for the seller of the option? What is the break even point

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