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Which buying a currency option provides

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Reference no: EM132932231

Problem 1: Buying a currency option provides:

a) a flexible hedge against exchange exposure

b) limits the downside risk while preserving the upside potential

c) a right, but not an obligation, to buy or sell a currency

d) all of the above (a, b, c)

e) None of the above (a, b, c)

Problem 2: The "open interest" shown in currency futures quotations is

(a) The total number of people indicating interest in buying the contracts in the near future

(b) The total number of people indicating interest in selling the contracts in the near future

(c) The total number of people indicating interest in buying or selling the contracts in the near future

(d) The total number of long or short contracts outstanding for the particular delivery month

Reference no: EM132932231

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