Question
A US importer has a CAD 2,066,387 payable due in one year. Estimate the cost today of an options contract that will eliminate exchange rate
A US importer has a CAD 2,066,387 payable due in one year. Estimate the cost today of an options contract that will eliminate exchange rate risk. The following options are available: Exercise price: USD 0.78 = CAD 1.00 Premium on a call option: $ 0.04 per CAD. Premium on a put option: $0.046 per CAD. The cost of the contract today is $____. If applicable, round to the nearest dollar.
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Creating Shareholder Value A Guide For Managers And Investors
Authors: Alfred Rappaport
1st Edition
0684844109, 9780684844107
