940 Exam2 Deadline Oct.29 Individual Effort NAME_ Open PAPER Notes, NO cells, No laptops, No tablets, No eDevices USS per Sw. Franc (CME) SPOT = $0.976/ Sfi Strike Price CALLS Cents per Sfil PUTS Cents per Spil AUG SEPT DEC AUG SEPT DEC 5.28 5.5+ 6.50 0.56 1.03 2.33 950 4.39 4.72 5.78 0.67 1.21 2.61 960 3.85 3.98 5.13 1.03 1.46 2.95 970 2.80 3.29 4.30 1.08 1.77 3.34 975 2.15 2.68 4.00 1.43 2.16 3.77 980 2.00 2.50 3.82 1.55 2.27 3.86 985 1.87 2.41 3.70 1.75 2.39 4.01 1.61 3.45 2.10 4.26 REFER TO OPTIONS TABLE ABOVE FOR THE QUESTION BELOW WHEN NECESSARY 990 2.16 2.89 1. 17pts it is now June. Your U.S.firm needs 500,000 Sw. Francs in early-Dec to pay a Swiss supplier. The current spot price is $0.976 / Sw. Franc. At Spot, the value of 500,000 Sw. Franc is $488,000. Your boss is worried that the $ may weaken and the $ value for the Sw. Francs in early Dec. could be much higher. Your boss requires you to arrange an appropriate options hedge so that the maximum 'all in net cost' (includes option premium) is not more than $507.000 Use the appropriate data above, list TWO options that meet the bosses' $507,000 maximum all-in net purchase value (option hedge premium included) in December. ENTER ANSWERS IN IN TABLE BELOW - SHOW NECESSARY CALCULATIONS IN BLANK WORKSPACE Circle Option Strike Option Premium Tot cost to buy Total all-in value of 500,000 Type month Price Per Sfr Options @t=0 Sw. Franc including option cost CALL or PUT CALL or PUT 940 Exam2 Deadline Oct.29 Individual Effort NAME_ Open PAPER Notes, NO cells, No laptops, No tablets, No eDevices USS per Sw. Franc (CME) SPOT = $0.976/ Sfi Strike Price CALLS Cents per Sfil PUTS Cents per Spil AUG SEPT DEC AUG SEPT DEC 5.28 5.5+ 6.50 0.56 1.03 2.33 950 4.39 4.72 5.78 0.67 1.21 2.61 960 3.85 3.98 5.13 1.03 1.46 2.95 970 2.80 3.29 4.30 1.08 1.77 3.34 975 2.15 2.68 4.00 1.43 2.16 3.77 980 2.00 2.50 3.82 1.55 2.27 3.86 985 1.87 2.41 3.70 1.75 2.39 4.01 1.61 3.45 2.10 4.26 REFER TO OPTIONS TABLE ABOVE FOR THE QUESTION BELOW WHEN NECESSARY 990 2.16 2.89 1. 17pts it is now June. Your U.S.firm needs 500,000 Sw. Francs in early-Dec to pay a Swiss supplier. The current spot price is $0.976 / Sw. Franc. At Spot, the value of 500,000 Sw. Franc is $488,000. Your boss is worried that the $ may weaken and the $ value for the Sw. Francs in early Dec. could be much higher. Your boss requires you to arrange an appropriate options hedge so that the maximum 'all in net cost' (includes option premium) is not more than $507.000 Use the appropriate data above, list TWO options that meet the bosses' $507,000 maximum all-in net purchase value (option hedge premium included) in December. ENTER ANSWERS IN IN TABLE BELOW - SHOW NECESSARY CALCULATIONS IN BLANK WORKSPACE Circle Option Strike Option Premium Tot cost to buy Total all-in value of 500,000 Type month Price Per Sfr Options @t=0 Sw. Franc including option cost CALL or PUT CALL or PUT