A U.S. corporation has purchased currency call options to hedge a 70,000 pound payable. The premium is
Fantastic news! We've Found the answer you've been seeking!
Question:
A U.S. corporation has purchased currency call options to hedge a 70,000 pound payable. The premium is $.02 and the exercise price of the option is $.50. If the spot rate at the time of maturity is $.65, what is the total amount paid by the corporation if it acts rationally?
Related Book For
Posted Date: