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Micca Metals, Inc. is a specialty materials and metals company located in Detroit. The company specializes in specific precious metals and materials that are

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Micca Metals, Inc. is a specialty materials and metals company located in Detroit. The company specializes in specific precious metals and materials that are used in a variety of pigment applications. Micca just purchased a shipment of phosphates from Australia for AUD6,000,000 payable in six months. Six month at-the money call options on AUD6,000,000 at an exercise price of USD0.9000/AUD1 are available at a premium of 3%. In the context of this information, match the lines on the following graph with the appropriate labels (note there are fewer blanks than available responses): Gain Loss A Choose... B D Long Forward H USD0.8700/AUD1 USD0.9000/AUD1 E Unhedged Receivable What is the label for line A? What is the label for line B? What is the label for line C? What is the label for line D? What is the label for line E? What is the label for line F? What is the label for line G? What is the label for line H? What is the label for line I? Call Option Hedge Premium of USD180,000 USD0.9300/AUD1 Long Call Premium of USD162,000 Unhedged Payable Hedged Payable S(USD/AUD)180 days Choose... = Micca Metals, Inc. is a specialty materials and metals company located in Detroit. The company specializes in specific precious metals and materials that are used in a variety of pigment applications. Micca just purchased a shipment of phosphates from Australia for AUD6,000,000 payable in six months. Six month at-the money call options on AUD6,000,000 at an exercise price of USD0.9000/AUD1 are available at a premium of 3%. In the context of this information, match the lines on the following graph with the appropriate labels (note there are fewer blanks than available responses): Gain Loss A B D H What is the label for line A? What is the label for line B? Choose... Choose... What is the label for line C? Choose... What is the label for line D? Choose... What is the label for line E? Choose... What is the label for line F? Choose... = What is the label for line G? What is the label for line H? Choose... Choose... What is the label for line I? Choose... E C

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