Question: Scenario: Lima Tech Lima Tech is a developer of software for K-12 children. The company has operations in Germany and would like to expand its

Scenario: Lima Tech Lima Tech is a developer of software for K-12 children. The company has operations in Germany and would like to expand its foreign operations with a new facility in India. If Lima Tech holds a currency option to purchase Euro at 1.05/$ in 30 days, at the end of which the exchange rate is 1.10/$, then Lima Tech would not exercise its currency option has succeeded in hedging against exchange rate risk O is required to follow through on a currency exchange would exercise its currency option

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