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QUESTION 7 Now assume that instead of taking a position in the put option one year ago, you sold a futures contract on 100,000 euros
QUESTION 7
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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
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What is the total gain from this contract?
1.00000 points
QUESTION 9
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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
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The lower the spot rate relative to the strike price, the more valuable a put option is.
True
False
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