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Nucor, Inc. (U.S. based MNC) will receive 900,000 euros in one year. The spot exchange rate today is $1.0500 per euro. It observes that 1.
Nucor, Inc. (U.S. based MNC) will receive 900,000 euros in one year. The spot exchange rate today is $1.0500 per euro. It observes that 1. The one-year interest rate for euros is 9%, and the one-year interest rate for U.S. dollars is 7%. 2. In the option market, there is one-year call option or put option available. Both options have the same exercise price of $1.0300 per euro, and a premium of $0.0075 per euro. 3. In the forward market, the one-year forward rate exhibits a 4% discount from the current spot exchange rate. market hedge? Question 26 options: $927,660.5505. $962,663.5514. $981,000.0000. $841,121.4953. Question 27 (3.125 points) If Nucor decides to use options contracts to hedge its receivables, Nucor shall Question 27 options: Buy one-year put options of 900,000 euros with the exercise price $1.0300 per euro. Buy one-year call options of 900,000 euros with the exercise price $1.0300 per euro. Sell one-year put options of 900,000 euros with the exercise price $1.0300 per euro
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