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Author Question: The major advantages of futures options over futures contracts includeI.positions can be hedged with ... (Read 206 times)

Aimless0988

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on: Mar 29, 2022

Question 1

Suppose you own a portfolio of British securities valued at about $500,000. The exchange rate is currently at $1 = £0.66. A currency contract on British pounds is set at 62,500 pounds. How many contracts must you purchase to protect at least 90% of your portfolio from exchange rate risk?
◦ 6
◦ 5
◦ 4
◦ 3

Question 2

The major advantages of futures options over futures contracts include

I.positions can be hedged with a smaller commitment of capital.
II.potential losses are limited to the size of the contract.
III.greater leverage and the potential for higher percentage returns.
IV.a greater variety of commodities is available for speculating or hedging purposes.

◦ II, III and IV only
◦ I and III only
◦ I, II and IV only
◦ I, II, III and IV
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
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Marked as best answer by Aimless0988 on Mar 29, 2022

swagmaster69

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Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Aimless0988

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Reply 2 on: Mar 29, 2022
Great answer, keep it coming :)

peter

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Reply 3 on: Yesterday
Excellent

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