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Compute the payoff of long forward at euro

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Reference no: EM132478945

Question 1. The current exchange rate is PLN 4.20. Compute the payoff of long forward (size of contract is EUR 100,000 and forward delivery is 4.05) at Euro on the expiration day if exchange rate decreased by 1%

Question 2. The current exchange rate is PLN 4.20. Compute the payoff of short call option (size of contract is EUR 10,000 and strike price is 4.00) at Euro on the expiration day if exchange rate decreases by 1%.

Question 3. An investor bought 1 put option for EUR 4 and bought 2 call option for EUR 3.5 each (all with the same maturity in 3 months and strike price of EUR 50). The risk-free rate is 6%. The maximal profit is:

Question 4. The current ehchange rate is PLN 4.20. Compute the payoff of long call option (size of contract is EUR 10,000 and strike price is 3.95) at Euro on the expiration day if exchange rate decreases by 1%.

Question 5. The current exchange rate is PLN 4.20. Compute the payoff of short forward (size of contract is EUR 100,000 and forward delivery is 4.10) at Euro on the expiration day if exchange rate decreases by 1%.

Reference no: EM132478945

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