For the following scenario, you should find:

The booked value

The value for each strategy. You must show the timeline, each step, and all calculations in a methodical way.

The BEIR

The upper bound

The lower bound

Barnibus, Inc is a U$.$S$.-$based company $($$$)$ whose knife sales are in euros $($Europe$).$ In September Barnibus, Inc delivers a large shipment of clevers to a distributor in Cologne. The $22$ million cash flow, is due in $90$ days, standard terms for the knife industry in Europe. Barnibus, Inc$$s treasury team has collected the following currency and market quotes.

Assumptions

Values

Notional Principle $()$

$22,000,000\mathrm{.}00$

Current spot rate $($$$/)$

$$1\mathrm{.}4195$

Days

$90\mathrm{.}00$

Barclays $90-$day forward rate $($$$/)$

$$1\mathrm{.}4181$

$90-$day euro dollar interest rate

$4\mathrm{.}000\%$

$90-$day euro interest rate

$3\mathrm{.}885\%$

$90-$day euro dollar borrowing rate

$5\mathrm{.}000\%$

$90-$day euro borrowing rate

$5\mathrm{.}250\%$

Barnibus, Inc weighted average cost of capital $($$$)$

$9\mathrm{.}600\%$

Strike rate $($$$/)$

Put

$$1\mathrm{.}4172$

Put option premium

$1\mathrm{.}500\%$

Strike rate $($$$/)$

Call

$$1\mathrm{.}4172$

Call option premium

$1\mathrm{.}000\%$

Barnibus Treasury forecast spot rate in $90$ days $($$$/)$

$$1\mathrm{.}4102$

Spot at maturity

$$1\mathrm{.}4170$