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AUS exporter denominates its Swiss exports in Swiss francs and will receive SF 600,000 in 1-year The exporter is examining the following market information today
AUS exporter denominates its Swiss exports in Swiss francs and will receive SF 600,000 in 1-year The exporter is examining the following market information today Swiss Franc 1-year forward rate = $0.40/SF Current Swiss Franc spot rate = $0.39/SF Call options on Swiss Francs with an Exercise Price of $0 40/SF and maturity of 1 year are available today at a premium of $ 0.02/SF Put options on Swiss Francs with an Exercise Price of $0 40/SF and maturity of 1-year are also available today at a premium of $ 0 03/SF If the firm decides today to use a 100% option hedge and the spot rate in 1 year turned out to be $0 39/SF, how much U.S. dollar revenue would be realized from the SF receivable (after taking into account option premiums and ignoring time value of option premium)? Choose the option appropriate for hedging purposes O $228.000 O $210.000 $222.000 $240,000 Question 12 1 pts Use the following information to answer questions 11 and 12 AUS exporter denominates its Swiss exports in Swiss francs and will receive SF 600,000 in 1-year. The exporter is examining the following market information today Swiss Franc 1-year forward rate = $0.40/SF Current Swiss Franc spot rate = $0.39/SF Call options on Swiss Francs with an Exercise Price of $0.40/SF and maturity of 1-year are available today at a premium of $ 0.02/SF. Put options on Swiss Francs with an Exercise Price of SO 40/SF and maturity of 1-year are also available today at a premium of S 0.03/SF. If the firm decides today to use a 50% option hedge and the spot rate in 1 year turned out to be $0.43/SF. how much U.S. dollar revenue would be realized from the SF receivable (after taking into account option premiums and ignoring time value of option premium Choose the option appropriate for hedging purposes. $243,000 $234.000
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