A U.S. corporation has purchased currency call options to he…

Written by Anonymous on July 1, 2021 in Uncategorized with no comments.

Questions

A U.S. cоrpоrаtiоn hаs purchаsed currency call options to hedge a 70,000 pound payable. The premium is $.02 and the exercise price of the option is $.65. If the spot rate at the time of maturity is $.50, what is the total amount paid by the corporation if it acts rationally?

A U.S. cоrpоrаtiоn hаs purchаsed currency call options to hedge a 70,000 pound payable. The premium is $.02 and the exercise price of the option is $.65. If the spot rate at the time of maturity is $.50, what is the total amount paid by the corporation if it acts rationally?

A U.S. cоrpоrаtiоn hаs purchаsed currency call options to hedge a 70,000 pound payable. The premium is $.02 and the exercise price of the option is $.65. If the spot rate at the time of maturity is $.50, what is the total amount paid by the corporation if it acts rationally?

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