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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

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Apex Corporation must pay its American supplier $18 million in three months. The list of options it can use for hedging is given in the table below: Option Type Strike Price (TL/USD Option premium (TL/USD) Call 16.7783 0.2519 Put 6.7374 0.6603 Which option should Apex buy? What is the total cost of its hedging position? Suppose the USD/TL exchange rate is TL7.2532/$ at expiration of the option contract. What is the net profit or loss from this position? Call; $122009400; $8548200 Put; TL11885400; -TL11885400 Call; TL4534200; TL4013999 Call; TL1068721; TL802799 Put; TL121273200; TLO

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