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Australian importer of music with payment of 200,000 to make in 90 days. Spot rate: / AUD 0.4090-0.4100 Option strike rate: / AUD 0.4120 Option
Australian importer of music with payment of
200,000 to make in 90 days.
Spot rate: / AUD 0.4090-0.4100
Option strike rate: / AUD 0.4120
Option premium: 0.5%
Premium has to be paid today:
= 200,000 0.005 0.4090
= AUD2,445
why does it use spot rate 0.490 instead of 0.4100?
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