Question 13 1 pts You purchased a call option on Euros for $.06 per unit. The Euro strike price was $1.32, and the Euro spot rate at the time when the option was expiring was $1.35. The option was overall and you Worth exercising, made money Worth exercising, broke even Not worth exercising: made money Not worth exercising lost money O Worth exercising lost money Not worth exercising: broke even None of the listed, it is impossible to tell without knowing the interest rates Question 14 1 pt Which of the following most resembles having insurance, in terms of the main purpose for a hedger: Buying (being long) a futures contract Buying (being long) an option O Buying (being long) a forward contract None of the listed even remotely resembles insurance in any way Selling (being short) an option Selling (being short) a forward contract Selling (being short) a futures contract Question 15 1 pts According to our discussion in class, under certain conditions (being in a highly competitive industry where no one else is hedging), hedging currency risk actually increases volatility. This is similar to: Buying a home when everyone else is renting Gambling when everyone else is playing it safe. Working for a government agency when everyone else is in the private sector Renting when everyone else is buying a home Working in the private sector when everyone else is working for a government agency Driving slowly when everyone around you is driving fast Question 16 1 pts You purchased a call option on Euros for $.03 per unit. The strike price was $1.47, and the spot rate at the time when the option was expiring was $1.51. Assume that there are 10,000 units in a Euro option. Your net profit/loss (negative number means a loss) on the option was dollars. 300 200 -200 100 100 100 -300 Question 17 1 pts You sold a call option on Euros for $.03 per unit. The strike price was $1.47, and the spot rate at the time when the option was expiring was $1.52. Assume that you did not buy the Euros unless the option was exercised. Also assume there are 10,000 units in a Euro option. Your net profit/loss (negative number means a loss) on the option was dollars. 00 0 -100 O 200 -300 0-200 O 100 300 D Question 18 1 pts You purchased a put option on Swiss Francs for $.03 per unit. The strike price was $.78, and the spot rate at the time when the option was expiring was $.74. Also assume that there are 10,000 units in a Swiss Franc option. Your net profit/loss (negative number means a loss) on the option was dollars. -100 0 -200 100 300 0-300 OO 200