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You plan to visit Geneva, Switzerland in six months to attend an international business conference. You expect to incur the total cost of SF 10,000

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You plan to visit Geneva, Switzerland in six months to attend an international business conference. You expect to incur the total cost of SF 10,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.62/SF and the six-month forward rate is $0.65/SF. You can buy the six-month call option on SF with the exercise rate of $0.63/SF for the premium of $0.10 per SF. Or you can buy the six-month put option on SF with the exercise rate of $0.63/SF for the premium of $0.15 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The six- month interest rate is 8 percent per annum (4% per six months) in the United States and 4 percent per annum 12% per six months) in Switzerland. If you choose to hedge via option on SF which option is a right instrument? Call option O Put option

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