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Euro/Japanese Yen. A French firm is expecting to receive 10.4 million in 90 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 90 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 Value Variable Value Domestic interest rate % p.a.) rd 2.1870 % rd 0.0875 % rf 0.0875 % rf 2.1870 % Foreign interest rate (% p.a.) Volatility (% p.a.) s 10.000 % S 10.000 % d1 -0.39411 d1 -0.01613 d2 -0.44377 d2 -0.06579 N(D1) 0.34675 0.49356 N(D1) Nd2) d2) 0.32860 0.47377 Print Done Euro/Japanese Yen. A French firm is expecting to receive 10.4 million in 90 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 Value Variable Value Domestic interest rate % p.a.) rd 2.1870 % rd 0.0875 % rf 0.0875 % rf 2.1870 % Foreign interest rate (% p.a.) Volatility (% p.a.) s 10.000 % S 10.000 % d1 -0.39411 d1 -0.01613 d2 -0.44377 d2 -0.06579 N(D1) 0.34675 0.49356 N(D1) Nd2) d2) 0.32860 0.47377 Print Done
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