Question
79. A MNC will receive SF1,000,000 in 30 days. Use the following information to determine the total dollar amount received (after accounting for the option
79. A MNC will receive SF1,000,000 in 30 days. Use the following information to
determine the total dollar amount received (after accounting for the option premium)
if the firm purchases and exercises a put option:
Exercise price =$.61
Premium =$.02
Spot rate =$.60
Expected spot rate in 30 days =$.56
30-day forward rate =$.62
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
