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Page 8 of 10 Page 2 2 Page 3 Question 8 1 point) Saved Ia U.S.company tries to hedge V100 million of accounts payable due
Page 8 of 10 Page 2 2 Page 3 Question 8 1 point) Saved Ia U.S.company tries to hedge V100 million of accounts payable due in one year, what should the company do ta hedge the FX risk given the information below. The one-year forward rate is 100/$. The company should buy 100 million one-year forward for $1 million The company should sell 8100 milion one-year forward for $1 million The company should buy 100 million one-year forward for $10 bilion, Page The company should sell V100 million one year forward for $10 billion Page : Pae 1 Vous Page Page 10 of 10 Page 2 2 Page 3 Question 10 (1 point) Saved Ifa U.S.company has 8 million euros accounts receivable due in 6 months, the company could do an options hedge based on the information below 6-month put option on euros at strike price of 51.05/euro: 15% premium 6-month call option on euros at strike price of $1.05/euro: 1,0% premium current spot rate: $1.07/euro The company should purchase the put option with a premium cost of 126.000. Page 4 Page 5 The company should purchase the call option with a premium cost of $84.000 5 The company should purchase the put option with a premium cost of $128.400 Page 6 The company should purchase the call option with a premium cost of $85,600
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