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Enable Eng 4. Suppose a U.S. based investor has to receive Canadian $ 10,000 during the next 3 months Investor is given the following options

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Enable Eng 4. Suppose a U.S. based investor has to receive Canadian $ 10,000 during the next 3 months Investor is given the following options by the banker (1+1+1+1+1) Call option: XS 5.15 / CS Pat option: XS 5,727 CS Option premium $ 0.010 / 1. What option should the investor choose to take b. What is the cost incurred today? c. What is the break-even price that the investor should set on C5 4. What is the total return to the investor, if the spot rate at the end of 6 months is 55.75/C5? c C # ENG 10:12 US 24/11/2020

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