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Chapter 12 - Monoging Transaction Exposure Wesfarmers has developed the following probability distribution for the spot rate of the Indian rupee (INR) against the Australian dollar (A$) in six months to buy call options on INR1.23 million with an exercise price of A$0.3322 and a premium of A$0.0338. A$0.2524 [31 per cent probability] A$0.4891 [25 per cent probability] A$0.5972 [(100-31-25) per cent probability] What is the expected value of the cash to be paid in A$ for the call option hedge? (enter the whole number without sign and symbol) Refer to Notebook 1 Answer: 5444 MI- Bys530 - SEQ 10 Dashboard | myMurdoch A

Posted Date: Jun 09, 2024 05:21 PM

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