Question
Which of the following derivative positions can help hedge the risk of depreciation of Australian dollars (AUD) against euros (EUR)? i. long a futures contract
Which of the following derivative positions can help hedge the risk of depreciation of Australian dollars (AUD) against euros (EUR)?
i. long a futures contract on AUD.
ii. short a call option on AUD.
iii. long a put option on AUD.
a.
iii and ii only.
b.
iii only.
c.
i, ii and iii.
d.
ii only.
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Financial Institutions Management
Authors: Anthony Saunders
3rd Edition
007303259X, 978-0073032597
