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Instant Pot Ltd., a U.S company, will receive 600,000 in two months for an export order of 35,000 pressure cookers from an European company. It
Instant Pot Ltd., a U.S company, will receive 600,000 in two months for an export order of 35,000 pressure cookers from an European company. It faces the following interests and exchange rates: Spot rate: 0.82/$ Forward rate (30 days) 0.84/$ Forward rate (60 days) 0.83/$ 60-day call option on dollars at 0.85/$ 2% 60-days put option on dollars at 0.86/$ 1% US 60-day interest rate (annualized) 4% Euro 60-day interest rate (annualized) 6% If an option is eventually exercised, Instant Pot Ltd. would net how much on its net export sale two month later? Please select the most suitable answer O a. $ 705,040.27 b.$ 697,674.42 OC. $ 691,150.65 Od. $ 705,882.35 Instant Pot Ltd., a U.S company, will receive 600,000 in two months for an export order of 35,000 pressure cookers from an European company. It faces the following interests and exchange rates: Spot rate: 0.82/$ Forward rate (30 days) 0.84/$ Forward rate (60 days) 0.83/$ 60-day call option on dollars at 0.85/$ 2% 60-days put option on dollars at 0.86/$ 1% US 60-day interest rate (annualized) 4% Euro 60-day interest rate (annualized) 6% If an option is eventually exercised, Instant Pot Ltd. would net how much on its net export sale two month later? Please select the most suitable answer O a. $ 705,040.27 b.$ 697,674.42 OC. $ 691,150.65 Od. $ 705,882.35
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