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A US corporation has purchased currency call options to hedge a 400,000 pound payable. The premium $0.02 the exercise price of the option is $0.55.
A US corporation has purchased currency call options to hedge a 400,000 pound payable. The premium $0.02 the exercise price of the option is $0.55. If the spot rate at the time of the maturity is $0.56, the total amount paid by the corporation is ____ if it acts rationally.
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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
