could answer both that be great!
There are two questions: 1./ FAl Corporation will be receiving 300,000 Canadian dollars (C\$) in 90 days. Currently, a 90-day call option with an exercise price of $0.75 (i.e., 0.75 USD per CS) and a premium of $0.01 (i.e., 0.01 USD per CS) is available. Also, a 90-day put option with an exercise price of $0.73 (i.e., 0.73 USD per C\$) and a premium of \$0.01 (i.e., 0.01 USD per C\$) is available. FAI plans to purchase options to hedge its receivable position. Assuming that the spot rate in 90 days is $0.71 (i.e., 0.71 USD per C\$), what is the net amount, in USD. received from the currency option hedge? Include the option premium in your calculation (but ignore the time value of money in your calculation). Pick the best answer. 2/ You are a trader at Quokka capital and trading futures on the USD v EUR exchange rate. The exchange rate is quoted as the number of USD per EUR and each contract is for a notional amount of EUR 125,000. Today, you do the following trades: At 10 am, you buy 10 futures contracts at 1.1275 . At 11 am, you sell 10 futures contracts at 1.1270 . At 2 pm, you sell 20 futures contracts at 1.1295 . At 3 pm, you buy 20 futures contracts at 1.1265 . What is your total (net) profit, in USD, at the end of the day. If the profit is actually a loss, enter a negative number. Give your answer to the nearest cent (i.e., 0.01 USD). There are two questions: 1./ FAl Corporation will be receiving 300,000 Canadian dollars (C\$) in 90 days. Currently, a 90-day call option with an exercise price of $0.75 (i.e., 0.75 USD per CS) and a premium of $0.01 (i.e., 0.01 USD per CS) is available. Also, a 90-day put option with an exercise price of $0.73 (i.e., 0.73 USD per C\$) and a premium of \$0.01 (i.e., 0.01 USD per C\$) is available. FAI plans to purchase options to hedge its receivable position. Assuming that the spot rate in 90 days is $0.71 (i.e., 0.71 USD per C\$), what is the net amount, in USD. received from the currency option hedge? Include the option premium in your calculation (but ignore the time value of money in your calculation). Pick the best answer. 2/ You are a trader at Quokka capital and trading futures on the USD v EUR exchange rate. The exchange rate is quoted as the number of USD per EUR and each contract is for a notional amount of EUR 125,000. Today, you do the following trades: At 10 am, you buy 10 futures contracts at 1.1275 . At 11 am, you sell 10 futures contracts at 1.1270 . At 2 pm, you sell 20 futures contracts at 1.1295 . At 3 pm, you buy 20 futures contracts at 1.1265 . What is your total (net) profit, in USD, at the end of the day. If the profit is actually a loss, enter a negative number. Give your answer to the nearest cent (i.e., 0.01 USD)
