Explain why you agree or disagree with this statement: “Buying a put isjust like shortselling the underlying asset. You gain the same thing from either position, if theunderlying asset’s price falls. If the price goes up, you have the same loss.
(a)Suppose a Canadian investor has CAD 1 million to invest for 90 days. The currentspot rate between CAD and USD is that 1 USD = 1.1239 CAD. He is considering twooptions: Option 1: He can invest this money in a local bank in Toronto, and earn annualisedreturn of 0.75%. Option 2: Alternatively, he could sell […]