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Help Me Solve This. Show Your Steps. A Japanese exporter has a 1,000,000 receivable due in one year, Estimate the cost today an options strategy

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Help Me Solve This. Show Your Steps.

A Japanese exporter has a 1,000,000 receivable due in one year, Estimate the cost today an options strategy that will eliminate exchange rate risk Listed Options Euro62,500 Yen12.500.000 $ 1.00=100 $ 0.0075peryl00 Calls 0.01 per 0.01 Strike Puts S 1.25:: 1.00 S 0.00,/SinaC per10 A) $20,000 ) $5,000 B) $12,500 D) none of the options Answer: A

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