Question: The software giant, Kludge Systems, has issued a bond that gives the holder the choice between USD 10,000, NZD 20,000, and GBP 5,000. Can Kludge's

The software giant, Kludge Systems, has issued a bond that gives the holder the choice between USD 10,000, NZD 20,000, and GBP 5,000. Can Kludge's bond be replicated using simple options?

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No It is tempting to say that you have for instance a USDT 10000 bond plus a call on NZDT 20000 ... View full answer

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