Question
32. At what future spot exchange rate would you be indifferent between a call option on 100,000 with a $ 0.03 / call premium and
32. At what future spot exchange rate would you be indifferent between a call option on 100,000 with a $ 0.03 / call premium and a forward hedge with guaranteed proceeds of $ 115,500 ?
a. The hedges do not have a spot rate of indifference
b. $ 0.8439 /
c. $ 1.1550 /
d. $ 1.1850 /
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M: Finance
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260772357, 9781260772357
