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The current exchange rate is 1.25=1.00 and a British firm offers a French customer the choice of paying a E10,000 bill due in 90 days
The current exchange rate is 1.25=1.00 and a British firm offers a French customer the choice of paying a E10,000 bill due in 90 days witheither 10.000 or 12.500. The seller has given the buyer an at-the-money call option on euro with a strike in pounds. The seller has given the buyer an at-the-money put option on euro with a strike in pounds. The seller has given the buyer an at-thermoney put option on pounds with a strike in euro. none of the options
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