Enoch Chemists Ghana Ltd is a company based in Ghana that imports drugs and other pharmaceutical products from the UK for sale in Ghana. It is May 2018 and Enoch Chemists has just received a shipment of goods worth 1 million from its UK supplier, to be paid in exactly three (6) months time. Payment will be made in UK pounds.

Additional information is as follows:

The current spot exchange rate is GH 6.20/.

Interest rate on the pound is 2% per annum

Interest rate on the cedi is 18% per annum

Available six months forward rate quote from an exchange rate dealer: GH 6.35/ - GH

6.50/.

Enoch Chemists has access to at the money OTC options on UK pounds, expiring six (6)

months from now. The premiums for the options are as follows:

o Call a premium of GH 0.10/.

o Put a premium of GH 0.05/.