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Hello sir
why in this question we have a put option, i thought it should be a call option bcoz the co is going to receiveIn future please say which exam the question is from – I cannot remember the name of every question in every exam 🙂
They are receiving CHF and to convert to $’s they will sell CHF’s and buy $’s.
The contract size of the options is quoted in CHF, so because they want to sell CHF they will buy put options – the right to sell CHF.
I do explain this in detail in my free lectures on foreign exchange risk management.
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