QUESTION 7

1. Now assume that instead of taking a position in the put option one year ago, you sold a futures contract on 100,000 euros with a settlement date of one year. What was the forward rate one year ago?

1.00000 points

QUESTION 8

1. What is the total gain from this contract?

1.00000 points

QUESTION 9

1. If the future exchange rate is higher than the spot rate, then we expect the spot rate to decrease.

   True

   False

1.00000 points

QUESTION 10

1. The lower the spot rate relative to the strike price, the more valuable a put option is.

   True

   False