Question Completion Status: QUESTION 2 1 points You have an option strategy on the same stock. You write a call option for 30c at an exercise price of 90c, and you buy a put option at an exercise price of $1 for 20c. When the option expires the spot price of the stock is 75c. What is your profitioss? 3.5c b. +250 +35c di +100 QUESTION 3 1 points Consider fixed-for-fixed currency swap. Firm A is a U.S.-based multinational. Firm Bis a U.K.-based multinational Firm A wants to finance a 2 million expansion in Great Britain. Firm Bwants to finance a $4 million expansion in the U.S. The spot exchange rate is E1.00 - $2.00. Firm A can borrow dollars at $10% and pounds sterling at 12%. Firm B can borrow dollars at 9% and pounds sterling at 119. Which of the following swaps is beneficial both party and meets their financing needs? In this swap, neither party should face exchange rate risk Firm A should borrow $4 million in dollars, pay 11% in pounds to Firm B, who in turn borrows 2 million pounds and pays 10% in dollars to A Ob. There is no such a swap that has neither party facing exchange rate risk O Firm A should borrow $2 million in dollars, pay 11% in pounds to Firm B, who in turn borrows 4 million pounds and pays 84 in dollars to A Od Firm A should borrow $4 million in dollars, pay 11% in pounds to Firm B, who in turn borrows 2 million pounds and pays 8% in dollars to A Close Window Save All Answers Chick Save and submit to save and submit Cliek Save All Answers to save all answers