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Apex Corporation must pay its American supplier $13 million in three months. The list of options it can use for hedging is given in the
Apex Corporation must pay its American supplier $13 million in three months. The list of options it can use for hedging is given in the table below: Option Type Strike Price (TL/USD Option premium (TL/USD) Call 6.8574 0.3321 Put 6.7968 0.6700 Which option should Apex buy? What is the total cost of its hedging position? Suppose the USD/TL exchange rate is TL7.0616/$ at expiration of the option contract. What is the net profit or loss from this position? Call; TL4317300:-TL1662700 O Call: TL1197403: -TL332540 Call: $89146200, $2654600 Put: TL8710000:-TL8710000 Put: TL88358400: TLO
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