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can B and C be done? la. Ib. Milton Mining is a U.S. multinational that just purchased 1,100,000 of goods on account, due in 30

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can B and C be done?
la. Ib. Milton Mining is a U.S. multinational that just purchased 1,100,000 of goods on account, due in 30 days from a German supplier. The spot exchange rate is $1.250/. The option premium is 0.50 percent. What is the U.S. dollar cost of the option? A firm wants to use an option to hedge 12.5 million in receivables from New Zealand firms. The premium is S.03. The exercise price is 8.55. If the option is exercised, what is the total amount of dollars received after accounting for the premium paid)? You purchase a call option on pounds for a premium of $.03 per unit, with an exercise price of S1.64; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.65, what is your net profit? le la. Ib. Milton Mining is a U.S. multinational that just purchased 1,100,000 of goods on account, due in 30 days from a German supplier. The spot exchange rate is $1.250/. The option premium is 0.50 percent. What is the U.S. dollar cost of the option? A firm wants to use an option to hedge 12.5 million in receivables from New Zealand firms. The premium is S.03. The exercise price is 8.55. If the option is exercised, what is the total amount of dollars received after accounting for the premium paid)? You purchase a call option on pounds for a premium of $.03 per unit, with an exercise price of S1.64; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.65, what is your net profit? le

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