1 Which of the following players would require a put option in order to hedge their natural position in the market? A) A farmer who buys corn to feed his livestock B) A farmer who sells peanuts to a chocolatier C) A farmer who has financed his land with a floating rate mortgage D) A miller who buys wheat from a farmer 2 Suppose that an U.S. Company X has some account payable due in one month. The account payable is in Euro dollars. The risk that the corporate treasurer faces is that A) the EUR/USD exchange rate falls in a month's time. B) the EUR/USD exchange rate rises in a month's time. C) the EUR interest rate increases in a month's time. D) the EUR interest rate falls in a month's time. 3 All else equal, when the Federal reserve cut the Federal Fund Rate, then A) value of both a put option and a call option increase. B) value of both a put option and a call option decrease. C) value of a put option increases and that of a call option decreases. D) value of a put option decreases and that of a call option increases