Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 08, 2024

a firm wants to use an option to hedge 12 million in receivables from New Zealand firms. the premium is $.04. the exercise price is

a firm wants to use an option to hedge 12 million in receivables from New Zealand firms. the premium is $.04. the exercise price is $.58. off the option is exercised, what is the total amount of dollars received ( after accounting for the premium paid) ?
a) $6480000

b) $6750000

c) $6500000

d) $6250000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fixed Income Markets And Their Derivatives

Authors: Suresh Sundaresan

3rd Edition

0123850517, 978-0123704719

More Books

Students also viewed these Finance questions

Question

★★★★★

Sassy Cotton produces fine cotton fabrics. The cotton is processed and finished before being shipped out to clothing companies. Material is added in the beginning of processing, and conversion costs...

Answered: 1 week ago

Question

★★★★★

10.102 Under what assumptions can the F distribution be used in making inferences about the ratio of population variances?

Answered: 1 week ago

Question

★★★★★

On November, 1 of the current year, Rob Elliot invested $30,500.00 of his cash to form a corporation, GGE Enterprises Inc, in exchange for shares of common stock. No other common stock was issued...

Answered: 1 week ago

Question

★★★★★

Which statement best defines the Full Capitation payment model? Group of answer choices One payment per patient for the entire year. One payment per diagnosis for the entire year. One payment per...

Answered: 1 week ago

Question

★★★★★

DO NOT COPPY THE ANSWER THAT EXISTS IN CHEGG ITS VERY WRONG DO NOT COPPY THE ANSWER THAT EXISTS IN CHEGG ITS VERY WRONG DO NOT COPPY THE ANSWER THAT EXISTS IN CHEGG ITS VERY WRONG DO NOT COPPY THE...

Answered: 1 week ago

Question

★★★★★

Dominic's Deli recently calculated its annual break-even sales revenue to be $280,000. For each dollar of sales revenue, $0.40 goes to cover variable costs. a. Compute the contribution margin ratio....

Answered: 1 week ago

Question

★★★★★

Which of the following steps is not associated with the "Silent Phase" of the Change Process? Group of answer choices Generate urgency Maintaining motivation Build coalition Create vision

Answered: 1 week ago

Question

★★★★★

As a food worker, it's your responsibility to: Select all that apply: Complete cleaning and sanitising sign-off sheets as per the Food Safety Plan Write safety data sheets Know what to clean and...

Answered: 1 week ago

Question

★★★★★

Question 1 (4 points} During a throw, a pitcher exerts a net force of 19N on a ball weighing 1.1 N. a. What is the ball's acceleration? b. The ball moves 3.3m before the pitcher releases it. With...

Answered: 1 week ago

Question

★★★★★

Lab 10: Simple Harmonic Motion Purpose/objective: In this experiment the student can observe and study the periodic motion in a plane and investigate the relation between the period of a simple...

Answered: 1 week ago

Question

★★★★★

Discuss the ways companies attempt to select, train, compensate, and reintegrate expatriate managers. page 646

Answered: 1 week ago

Question

★★★★★

List the different categories of international employees. page 642

Answered: 1 week ago

Question

★★★★★

Explain the legal environments impact on labor relations. page 590

Answered: 1 week ago

Previous Question Next Question