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Suppose a Canadian company has to pay 5 m sometime during the next 3 months. To hedge this the importer buys options on the ,

Suppose a Canadian company has to pay 5 m sometime during the next 3 months. To hedge this the importer buys options on the , and the option premium is $0.0220/, for options with K = $1.50/ What option should the importer buy? Suppose a Canadian company has to pay 5 m sometime during the next 3 months. To hedge this the importer buys options on the , and the option premium is $0.0220/, for options with K = $1.50/ What option should the importer buy?

1. Call Options

2. CAD Call Options

3. Put Options

4. CAD Put Options

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