in Question 3, Recommendation and discussion section it says that “Based on the forward and futures markets, the dollar is expected to strengthen and it is therefore unlikely the option would be exercised”. Since the dollar rate for options is less (Therefore you will be receiving more euros), isnt it better to exercise (ignoring the premium)?
Sir, boullain part c, when calculating the loss on 1 march, they did ( 1.1410- 1.1422) my question is why did the use the September price the 1.1422 , why don’t they atleast use the march futures Please explain. Thank you!