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Refer to the Previous Question

Question 4

Multiple Choice

Refer to the previous question. What is the euro gain or loss assuming that future conditions described in Case 1 actually occur? (Ignore commissions and margin costs, and assume a naive hedge ratio.)


A) €2 945 000.00 gain
B) €65 500.00 gain
C) €2 945 000.00 loss
D) €65 500.00 loss
E) None of the above

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