Which type of option helps the importer to hedge risks of exchange rate? A. Put option B. All names are not correct c. Call opti

Question

patriot [66]

2 years ago

13

Which type of option helps the importer to hedge risks of exchange rate? A. Put option B. All names are not correct c. Call opti

on d. Call option and put option

Mathematics

1 answer:

dalvyx [7] · Answer 1 · 2022-10-09T13:23:46+03:00

Answer:

Call option and put option ( D )

Step-by-step explanation:

During hedging in stock/financial markets both the Call and put option can be used to hedge the trading position of the trader against the change in exchange. This is because the call or put option is used depending on the initial position of the trader.

<em>Call option is used when the trader is currently holding a short position</em>

<em>Put option is used when the trader is currently holding a long position</em>