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Euro/Japanese Yen. A French firm is expecting to receive 10.4 million in 120 days as a result of an export sale to a Japanese semiconductor
Euro/Japanese Yen. A French firm is expecting to receive 10.4 million in 120 days as a result of an export sale to a Japanese semiconductor firm. What will it cost, in total, to purchase an option to with a strike price of 0.007353/? The spot rate is 0.007300/ (See table for initial values.) . The cost, in total, to purchase an option with a strike price of 0.007353/JPY (knowing that its spot rate is 0.007300/JPY) is N. (Round to the nearest cent.) Data table A Japanese firm wishing to buy or sell euros (the foreign currency) A European firm wishing to buy or sell yen (the foreign currency) Variable Variable rd rd Domestic interest rate (% p.a.) Foreign interest rate (% p.a.) Volatility (% p.a.) Value 2.1870 % 0.0875 % 10.000 % Value 0.0875 % 2.1870 % 10.000 % rf rf S S 0.02406 -0.03327 d1 d2 N(D1) N(02) -0.36429 -0.42162 0.35782 0.33665 d1 d2 N(01) N(02) 0.50960 0.48673 Euro/Japanese Yen. A French firm is expecting to receive 10.4 million in 120 days as a result of an export sale to a Japanese semiconductor firm. What will it cost, in total, to purchase an option to with a strike price of 0.007353/? The spot rate is 0.007300/ (See table for initial values.) . The cost, in total, to purchase an option with a strike price of 0.007353/JPY (knowing that its spot rate is 0.007300/JPY) is N. (Round to the nearest cent.) Data table A Japanese firm wishing to buy or sell euros (the foreign currency) A European firm wishing to buy or sell yen (the foreign currency) Variable Variable rd rd Domestic interest rate (% p.a.) Foreign interest rate (% p.a.) Volatility (% p.a.) Value 2.1870 % 0.0875 % 10.000 % Value 0.0875 % 2.1870 % 10.000 % rf rf S S 0.02406 -0.03327 d1 d2 N(D1) N(02) -0.36429 -0.42162 0.35782 0.33665 d1 d2 N(01) N(02) 0.50960 0.48673
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