+ e i Collaborate Now Search All Matches | Chevex y.edu/bapo blackboard contentcontent pourse 1877189,16 content id=508800211 modereset Step 5 - Using Options to hedge - 500pts Choose ONE of the following underlying exposures: 1- Long Eur 10 million (receivable) to be received in 6 to 7 months. OR 2- Long GOLD 1 million Troy ounces to be received in 6 to 7 months OR 3- Long Mexican Peso vs USD to be received in 6 to 7 months. OR 4- Short Eur 10 million (payable) to be paid in 6 to 7 months. OR 5- Short GOLD 1million Troy ounces to be paid in 6 to 7 months OR 6- Short Mexican Peso vs USD to be paid in 6 to 7 months. a.Using listed exchange prices, your calculator or web based pricing engines, pricea vanilla option to hedge the corporate exposure. To check your work, findan option pricing model on the internet and check your work. If you run out ofoptions (pun intended) try this: http://www.option-price.com/index.php b.For a range of possible spot values at expiration show 1- the underlying position profit/loss 2- the profit/loss scenario of the option you will buy at expiration 3- the underlying position hedged with an option combined. c.Generate a table and graph of the potential profit or loss from these different alternatives. d.compare not hedging, hedging with a forward vs hedging with an option, just a few sentences please Your submition should look like page 20 and 22 or 23 and 24 in presentation 6. + e i Collaborate Now Search All Matches | Chevex y.edu/bapo blackboard contentcontent pourse 1877189,16 content id=508800211 modereset Step 5 - Using Options to hedge - 500pts Choose ONE of the following underlying exposures: 1- Long Eur 10 million (receivable) to be received in 6 to 7 months. OR 2- Long GOLD 1 million Troy ounces to be received in 6 to 7 months OR 3- Long Mexican Peso vs USD to be received in 6 to 7 months. OR 4- Short Eur 10 million (payable) to be paid in 6 to 7 months. OR 5- Short GOLD 1million Troy ounces to be paid in 6 to 7 months OR 6- Short Mexican Peso vs USD to be paid in 6 to 7 months. a.Using listed exchange prices, your calculator or web based pricing engines, pricea vanilla option to hedge the corporate exposure. To check your work, findan option pricing model on the internet and check your work. If you run out ofoptions (pun intended) try this: http://www.option-price.com/index.php b.For a range of possible spot values at expiration show 1- the underlying position profit/loss 2- the profit/loss scenario of the option you will buy at expiration 3- the underlying position hedged with an option combined. c.Generate a table and graph of the potential profit or loss from these different alternatives. d.compare not hedging, hedging with a forward vs hedging with an option, just a few sentences please Your submition should look like page 20 and 22 or 23 and 24 in presentation 6