QUESTION 7 When buying a FX Opion straddle.... We are buying protection for potential volatility of the Currency The paid premium is the maximum loss we can ever incur Othere are no further margin requirements O All of the above QUESTIONS What would be the proper trade type to hedge the FX exposure you may incur because of a potential Court settlement coming soon in Brazil your loving operation burned a significant portion of protected rainforest)? Buy Brazilian Reals outright in the OTC market Buy Brazilian Real Future Contracts in an Exchange Buy Brazilian Real Call Options Sell Brazilian Real Put Options QUESTION 5 Your firm's ISDA agrement with P Morgan calls for an initial Margin of 1 of Notional, plus minus the Mark to Market net gain or loss to be posted as callera, Your statement shows the following Position Expiry PAL FX Forward USDGBP 12172022 GBP1,000,000 51A/GBP $35,000 FX Forward; USDEUR 12012023 EUR1,000,000 $1.20 EUR (565.000 What should be your Total Margin Collateral Total Margn posted $30,000 (Current Lesses Total Margin posted $56,000 ($25,000 in initial Margin, plus $30,000 in Current Losses) 1% of the trades. GBP10,000 and EUR10,000 All of the above QUESTION G There is the 50-50 chance that your firm may be signing a new contract for work in Japan, potentially yedia payment coming to you of JPY1.000.000.000 Februa ry 28, 2021 To hedge the potential FX Risk We could sell the pyl with an OTC Forward with our bank We could sell jpy February Expiry Futures Contracts in the Chicago Mercantile Exchange We could Buy a JPY Put option for PV10 notional and expiry Feb 28, 2021 We could BuvaPY Call option for IPv1 national and expiry Feb 28 2021