Question
Check Answer A U.S. corporation has purchased currency put options to hedge a100,000 Canadian dollar (C$) receivable. The premium is $0.04 and the exercise price
Check Answer
A U.S. corporation has purchased currency put options to hedge a100,000 Canadian dollar (C$) receivable. The premium is $0.04 and the exercise price of the option is $.75. If the spot rate at the time of maturity is $0.75, what is the net amount received by the corporation if it acts rationally?
Answer = 71,000.00
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
11th Edition
1260288390, 978-1260288391
