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NEW QUESTION: 1
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?
A. The company expects to receive USD 1million from a customer and wishes to obtain an additional benefit if the USD strengthens beyond GBP 1.00 = USD 1.61.
B. The company expects to receive USD 1million from a customer and wishes to offset the cost of the put option by the premium on the call option.
C. The company expects to pay USD 1million to a supplier and wishes to obtain additional protection against the USD strengthening beyond GBP 1.00 = USD 1.65.
D. The company expects to pay USD 1million to a supplier and wishes to offset the premium from the call option against the cost of the put option.
Answer: B

NEW QUESTION: 2
Which three reasons make an organization conduct Business Transformation? (Choose three.)
A. Lack of discipline
B. Reduced profit
C. Poor market-share
D. Consumerization
E. Slow processes
Answer: B,C,E

NEW QUESTION: 3

A. Option B
B. Option C
C. Option A
D. Option D
Answer: C

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