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I have a general AFM question related to interest rate and foreign exchange risk calculations under the options instruments.
In a question, usually under the options, more than one strike/exercise price is given. Am I expected to show calculation of options under both the strike prices or can I choose a strike price and state a reason for choosing it (eg: closest value to libor (for interest rate questions)) and just do calculations for the chosen strike price? Will my marks be deducted?
These days there are usually only two exercise prices given. Ideally you should show the results for all available exercise prices.