Kiko Pelehs Puts. Kiko Peleh writes a put option on Japanese yen with a strike price of

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Kiko Peleh’s Puts. Kiko Peleh writes a put option on Japanese yen with a strike price of $0.008000/¥

(¥125.00/$) at a premium of 0.0080¢ per yen and with an expiration date six months from now. The option is for ¥12,500,000. What is Kiko’s profit or loss at maturity if the ending spot rates are ¥110/$, ¥115/$,

¥120/$, ¥125/$, ¥130/$, ¥135/$, and ¥140/$?

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Multinational Business Finance

ISBN: 9781292270081

15th Global Edition

Authors: David Eiteman, Arthur Stonehill, Michael Moffett

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