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Suppose that the exchange rate is 1.25 = 1.00. Options (calls and puts) are available on the London exchange in units of 10,000 with strike

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Suppose that the exchange rate is 1.25 = 1.00. Options (calls and puts) are available on the London exchange in units of 10,000 with strike prices of 0.80 = 1.00. Options (calls and puts) are available on the Frankfurt exchange in units of 10,000 with strike prices of 1.25 = 1.00. How many call or put options should the UK firm to hedge a 100,000 receivables? O Both strategies work, Buy 10 put options on the euro with a strike in GBP. Buy 8 put options on the euro with a strike in pounds

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