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Find the delta of the bank position

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Reference no: EM132960870

Problem 1: Exchange rate is currently $1.85 US per 1 British pound. Interest rate is 3% in the US and 4.5% in the UK. A bank is long a futures contract on 1,000,000 pounds with F= $1.9 million maturing in one year. Find the delta of the bank's position.

a. +966,183.57
b. +956,937.80
c. -961,538.46
d. -970,873.79

Problem 2: A "protective put" option strategy involves what positions?

a. Buy the put, short the stock
b. Write the put, buy the stock
c. Buy the put, buy the stock
d. Write the put, short the stock

Reference no: EM132960870

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