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An Australian exporter WA Co . wants to export goods for 5 . 3 6 million Chinese yuan ( CNY ) and receive payment from
An Australian exporter WA Co wants to export goods for million Chinese yuan CNY and receive payment from a Chinese importer, Sing Tao, in one year. WA Co also wants to minimise its exchange rate risk for receiving CNY by taking the options market hedging strategy.
Calculate the minimum Australian dollar A$ net proceeds from the options market hedging strategy based on the information in Table Enter the whole number without sign and symbol
TABLE
For Chinese yuan CNY
Spot rate
A$CNY
Oneyear forward rate
A$CNY
Oneyear CNY deposit and borrowing rate
Oneyear call options
Exercise price A$
Premium A$
Oneyear put options
Exercise price A$
Premium A$
For Australian dollar A$
Spot rate
CNYA$
Oneyear forward rate
CNYA$
Oneyear A$ deposit and borrowing rate
Oneyear call options
Exercise price CNY
Premium CNY
Oneyear put options
Exercise price CNY
Premium CNY
Do not use AI for answer and clearly state the formulae used.
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