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Question
Banque de Lyon agrees to sell Golden Socks 1,000,000 euros at a price of $1.35 to the euro 6 months from today. If the spot price of the euro in six months is $1.45,A) the payoff to Banque de Lyon is $100,000.
B) the payoff to Banque de Lyon is ($100,000).
C) the payoff to Banque de Lyon is ($135,000).
D) the payoff to Golden Socks is ($100,000).
Answer
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