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You owe someone 10,000,000 deliverable in 1 year. The current spot is $1.20/f. You have calculated that your profitability breakeven price is $12 million. How
You owe someone 10,000,000 deliverable in 1 year. The current spot is $1.20/f. You have calculated that your profitability breakeven price is $12 million. How can you hedge this exposure using options and ensure that you at least breakeven? A. Sell call options with a strike price =$1.20/E B. Buy call options with a strike price =$1.20/E C. Sell put options with a strike price =$1.20/ D. Buy put options with a strike price =$1.20/f
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