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Solve properly with reasons!! 8.14) Match the four types of options (Long EUR Call, Short EUR Call, Long EUR Put and Short EUR Put) to
Solve properly with reasons!!
8.14) Match the four types of options (Long EUR Call, Short EUR Call, Long EUR Put and Short EUR Put) to the statements below. A ls exercised by the counter party when the current EUR/USD spot rate exceeds the strike price. B is used by importers to hedge EU long exposures C Gives you the right to sell EUR at the strike price D You will gain the premium if the EUR/USD exchange rate is higher than the strike price E Has limited losses when the EUR/USD exchange rate increases beyond the strike price but large gains when the EUR/USD is below the strike price. F ls used by exporters to hedge EUR short exposures. G is the obligation to buy EUR at the strike price if the counter party exercises the option. Please elaborate and explainStep by Step Solution
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