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Derivatives
Derivatives
Medium
Castleton Industries, a UK-based manufacturer, expects to receive USD 8 million in 6 months. The current GBP/USD spot rate is 1.2650 and the 6-month forward rate is 1.2580. To hedge using currency options, Castleton should most likely purchase:
A
A USD put / GBP call option
B
A USD call / GBP put option
C
A GBP put / USD call option
D
A forward contract to sell GBP
Select an answer to continue
Tags
#currency-options
#fx-hedging
#put-call
#foreign-exchange
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CFA Level II — Derivatives Practice Question | AcadiFi | AcadiFi