alleryStart learning →If a bought currency option expires out-of-the-money, the company can
Abe forced to deliver
Bdeal at a better market rate
Close the full notional
Dextend it free of charge
Answer & Solution
Correct answer: B. deal at a better market rate
An option sets an at-worst rate; if the market rate is better, the option is left unexercised and the deal is done in the market.
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