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You want to hedge your exchange rate risk arising from a EUR receivable by using a put option on AUD/EUR. Your broker quotes a premium

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You want to hedge your exchange rate risk arising from a EUR receivable by using a put option on AUD/EUR. Your broker quotes a premium of AUDO.0252 for put options on EUR with a strike price of AUD1.2955/EUR: What is the break-even price for a buyer or a seller of this AUD/EUR put option? a. The break-even price is AUD 1.3207 for the buyer and AUD 1.2703 for the seller of the option. b. The break-even price is AUD 1.2703 for the buyer and AUD 1.3207 for the seller of the option. c. The break-even price is AUD 1.2955 for the buyer and AUD 1.3207 for the seller of the option. d. The break-even price is AUD 1.3207 for the buyer and the seller of the option. e. The break-even price is AUD 1.2703 for the buyer and the seller of the option

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