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1. What is the label for line A, B, C, D, E, F, G, H, I? Options below (Pick one for each label). Micca Metals,
1. What is the label for line A, B, C, D, E, F, G, H, I? Options below (Pick one for each label).
Micca Metals, Inc. is a specialty materials and metals company located in Detroit. The company specializes in specific precious metals and materials that are used in a variety of pigment applications. Micca just purchased a shipment of phosphates from Australia for AUD6,000,000 payable in six months. Six month at-the money call options on AUD6,000,000 at an exercise price of USD0.9000/AUDI are available at a premium of 3%. In the context of this information, match the lines on the following graph with the appropriate labels (note there are fewer blanks than available responses): Gain C Loss Unhedged Payable Premium of USD162,000 Premium of USD180,000 Long Call Long Forward Unhedged Receivable USDO.9300/AUD1 USD0.8700/AUD1 S(USD/AUD)180 days Hedged Payable USDO.9000/AUD1 Call Option Hedge Micca Metals, Inc. is a specialty materials and metals company located in Detroit. The company specializes in specific precious metals and materials that are used in a variety of pigment applications. Micca just purchased a shipment of phosphates from Australia for AUD6,000,000 payable in six months. Six month at-the money call options on AUD6,000,000 at an exercise price of USD0.9000/AUDI are available at a premium of 3%. In the context of this information, match the lines on the following graph with the appropriate labels (note there are fewer blanks than available responses): Gain C Loss Unhedged Payable Premium of USD162,000 Premium of USD180,000 Long Call Long Forward Unhedged Receivable USDO.9300/AUD1 USD0.8700/AUD1 S(USD/AUD)180 days Hedged Payable USDO.9000/AUD1 Call Option HedgeStep by Step Solution
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