options markets-otc vs. exchange traded

Dear sir, please tell me if my answers are correct

part 1) Suppose a bank sells call option to a company making a takeover offer where the option is contingent on the offer being accepted. suppose the bank re-insures the option on an options exchange by buying a call for the same amount of foreign currency. consider the effect (who gains/loses) of this transaction in the following situations:

1) foreign currency value increases, t/o offer accepted- the bank gains as it is in the long position. company gains as well

2) foreign currency value increases, t/o is rejected- bank gains as it is in the long position (value of call increases), company loses the premium paid to the bank

3) foreign currency value decreases, t/o accepted- bank loses premium as the value of call option falls

4) foreign currency value decreases, t/o rejected- bank loses premium, company loses premium paid to bank

part 2) satisfy yourself why a bank that reinsures on an options exchange might charge less for over the counter option

answer: the otc option is safer financially than exchange traded options since exchange traded options depend upon the movement of exchange rates which are unpredictable and thus exchange traded options are not perfectly suited for contingencies.
There could be situations where the dealer could gain from otc if a deal is accepted but not on exchange traded markets.