CIMAPRA19-P03-1 practice question 2 of 35
A UK manufacturing company has simultaneously: • purchased a put option to sell USD 1million at an exercise price of GBP1.00 = USD1.65 • sold a call…
Choose your answer, then check it against the explanation.
A UK manufacturing company has simultaneously:
• purchased a put option to sell USD 1million at an exercise price of GBP1.00 = USD1.65
• sold a call option that grants the option holder the right to buy USD 1million at a price of GBP1.00
= USD1.61 (this option has the same maturity date as the put).
Which of the following is a valid explanation for entering into these option positions?
Question 2 of 35
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