Question: 1. Explain the relationship between strike prices and implied volatilities under a price jump scenario. 2. How does a dividend payment impact the option price?

1. Explain the relationship between strike prices and implied volatilities under a price jump scenario.

2. How does a dividend payment impact the option price?

3. Describe briefly the nature of a swap and its primary component.

4. Under what circumstances would a multinational company elect to enter into a currency swap agreement?

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