AFS made the amption that it would recruit 20.000 students in 2019. Based on the foc.000.000 uning cost of 1,000 per student). Last year, when these hedges were put in place the pote is retrospect. All rates these hedges were overoptimistic, as the pandemic has severely hurt demand to ASV. This has meruped to sign up only 7,000 students. Assuming that costs per student are 61.000 tas predicted, what we had to under the following scenario? AFS entered into an option contract for 20,000,000 last year, which expires today. Last year, when Alps entered into the contract, the bank quoted the following terms for options: 1. Put option on euro, strike price of $1.12/, with a 5% premium 2. Call option on euro, strike price of $1.10/, with a 5% premium. Which option would Alfs have chosen, and what are AlFS' actual costs, given that they bought that option, and the exchange rate today $1.20/C7 For simplicity, assume the cost of capital (WACC) is zero (for this question only). What is the actual dollar cost to AIFS? asking for the costs today, one year after they bought the option, when we know demand is for 7,000 students at 1,000 each.) Type in the correct answer below. ction 21 D Question 20 Last year. Alls made the assumption that it would recruit 20,000 students in 2019. Based on this assumption. Alfs entered into a hede for 20,000,000 (assuming a cost of 1,000 per student). Last year, when these hedges were put in place, the spot exchange rate stood $1.11/ In retrospect, Alf realizes these hedges were overoptimistic, as the pandemic has severely hurt demand for AIFS' services. This year. As has managed to sign up only 7,000 students. Assuming that costs per student are 1,000 (as predicted), what are Alfs' actual dollar costs under the following scenario? AIFS entered into an option contract for 20,000,000 last year, which expires today. Last year, when AlFS entered into the contract, the bank quoted the following terms for options: 1. Put option on euro, strike price of $1.12/, with a 5% premium. 2. Call option on euro, strike price of $1.10/, with a 5% premium Which option would Alls have chosen, and what are AIFS' actual costs, given that they bought that option, and the exchange rate today is $1.20/For simplicity, assure the cost of capital (WACC) is zero (for this question only). What is the actual dollar cost to AIFS? Mint asking for the couts today, one year after they bought the option, when we know demand is for 7,000 students at 1,000 each Type in the correct answer below Question 21 6 AFS made the amption that it would recruit 20.000 students in 2019. Based on the foc.000.000 uning cost of 1,000 per student). Last year, when these hedges were put in place the pote is retrospect. All rates these hedges were overoptimistic, as the pandemic has severely hurt demand to ASV. This has meruped to sign up only 7,000 students. Assuming that costs per student are 61.000 tas predicted, what we had to under the following scenario? AFS entered into an option contract for 20,000,000 last year, which expires today. Last year, when Alps entered into the contract, the bank quoted the following terms for options: 1. Put option on euro, strike price of $1.12/, with a 5% premium 2. Call option on euro, strike price of $1.10/, with a 5% premium. Which option would Alfs have chosen, and what are AlFS' actual costs, given that they bought that option, and the exchange rate today $1.20/C7 For simplicity, assume the cost of capital (WACC) is zero (for this question only). What is the actual dollar cost to AIFS? asking for the costs today, one year after they bought the option, when we know demand is for 7,000 students at 1,000 each.) Type in the correct answer below. ction 21 D Question 20 Last year. Alls made the assumption that it would recruit 20,000 students in 2019. Based on this assumption. Alfs entered into a hede for 20,000,000 (assuming a cost of 1,000 per student). Last year, when these hedges were put in place, the spot exchange rate stood $1.11/ In retrospect, Alf realizes these hedges were overoptimistic, as the pandemic has severely hurt demand for AIFS' services. This year. As has managed to sign up only 7,000 students. Assuming that costs per student are 1,000 (as predicted), what are Alfs' actual dollar costs under the following scenario? AIFS entered into an option contract for 20,000,000 last year, which expires today. Last year, when AlFS entered into the contract, the bank quoted the following terms for options: 1. Put option on euro, strike price of $1.12/, with a 5% premium. 2. Call option on euro, strike price of $1.10/, with a 5% premium Which option would Alls have chosen, and what are AIFS' actual costs, given that they bought that option, and the exchange rate today is $1.20/For simplicity, assure the cost of capital (WACC) is zero (for this question only). What is the actual dollar cost to AIFS? Mint asking for the couts today, one year after they bought the option, when we know demand is for 7,000 students at 1,000 each Type in the correct answer below Question 21 6