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Apex Corporation must pay its American supplier $18 million in three months. The list of options it can use for hedging is given in the

Apex Corporation must pay its American supplier $18 million in three months. The list of options it can use for hedging is given in the table below: Option Type Strike Price (TL/USD) Option premium (TL/USD) Call 6.8456 0.4078 Put 6.8397 0.5286 Which option should Apex buy? What is the total cost of its hedging position? Suppose the USD/TL exchange rate is TL7.0396/$ at expiration of the option contract. What is the net profit or loss from this position? Put; TL9514800; -TL9514800 Call; TL7340400; -TL3848400 Call; $123220800; $3492000 Call; TL1730148; -TL769680 Put; TL123114600; TL0

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