Suppose XYZ Corporation's stock price rises or falls with equal probability by $45 each month, starting where it ended the previous month. What is the value of a three-month at-the-money European call option on XYZ's stock if the stock is priced at $100 when the option is purchased? Instructions: Enter your response rounded to the nearest penny (two decimal places). $ What kind of an option should you purchase If you anticipate selling $5 million of Treasury bonds in one year's time and wish to hedge against the risk of interest rates rising? You should purchase a (Click to select) option. If the U.S. dollar-British pound exchange rate is $1.35 per pound, and the U.S. dollar-euro rate is $0.70 per euro: Instructions: Enter your response rounded to the nearest two decimal places, a. What is the pound-per-euro rate? ( per b. If the pound per euro rate were above this rate, you could profit by converting (Click to select) . (Click to select) . and then (Click to select) . If the pound per euro rate were below this rate, you could make a profit by converting (Click to select) (Click to select) , and then (Click to select) Suppose XYZ Corporation's stock price rises or falls with equal probability by $45 each month, starting where it ended the previous month. What is the value of a three-month at-the-money European call option on XYZ's stock if the stock is priced at $100 when the option is purchased? Instructions: Enter your response rounded to the nearest penny (two decimal places). $ What kind of an option should you purchase If you anticipate selling $5 million of Treasury bonds in one year's time and wish to hedge against the risk of interest rates rising? You should purchase a (Click to select) option. If the U.S. dollar-British pound exchange rate is $1.35 per pound, and the U.S. dollar-euro rate is $0.70 per euro: Instructions: Enter your response rounded to the nearest two decimal places, a. What is the pound-per-euro rate? ( per b. If the pound per euro rate were above this rate, you could profit by converting (Click to select) . (Click to select) . and then (Click to select) . If the pound per euro rate were below this rate, you could make a profit by converting (Click to select) (Click to select) , and then (Click to select)