Please answer my attached questions

A US importer, who incurs costs in Euros and bills its customers in USD, is concerned about the depreciation of USD against Euro due to EURO payables of 25,000,000 in a month. To hedge (protect himself/herself) the position, importer decides to use futures markets. Currently EUR contracts (125,000 EUR each) are traded at 1.3725. Spot rate is 1.3615 (i.e. 1.3615 USD per 1 EUR). Suppose the exporter takes an equal futures position to its cash market position (Euro 25m) at 1.3725. Assume that futures contract price and spot rates are 1.3755 and 1.3745 respectively when the hedge is liquidated. What should be the unit cost per EURO for the exporter in terms of USD? 1.3525 1.3945 1.3600 1.3715 Currently EURO contracts (125,000 EURO each) are traded at $0.8470. Spot rate is $0.8310 (i.e. 0.8310 $ per ). Assume that a speculator bought 80 Euro futures contract (or total of Euro 10,000,000). Suppose speculator liquidated the contract one month later, when the contract closed at $0.8600. If the initial margin for each Euro contract is $ 2,000, what is the annualized return to the speculator in this contract (NOTE:calculate simple annual return not compounded)? Hint: You need to calculate the return first. This is for 1 month. Then, you need to make it annual using the simple and not compounded formula. 81 % 9.75 % 975 % 54.5% A U.S. corporation has purchased currency call options to hedge a 70,000 pound payable. The premium is 2 cents per GBP and the exercise price of the option is 1.6500 (USD per 1 GBP). If the spot rate at the time of maturity is 1.7100 USD per GBP, what is the net profit the company gets from the option hedge? $3,600 . $4,900 $2,800 $1,400 Option delta measures____________. Sensitivity of option premium to change in the spot exchange rate Sensitivity of option premium to change in the volatility Sensitivity of option premium to change in risk free interest rate differential none of the above Assume that a EURO Call option trades at $0.05. The strike price of the option is $0.9200 and the current spot rate is $0.9203. A Euro forward contract that expires at the same time with the option is at $0.9195. Use this information to determine which one of the following is not a correct statement. Time value of the option is $0.0497 US dollar interest rate is lower than Euro interest rate Intrinsic value of the option is $0.03 The call option price is expected to increase if USD interest rate increases