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Pandora corporation (a U.S. based multinational corporation) would like to use currency options to hedge a 66,500 euro payable due on December 15th 2020. Both
Pandora corporation (a U.S. based multinational corporation) would like to use currency options to hedge a 66,500 euro payable due on December 15th 2020. Both currency put options and call options have the premium of $.05 (per unit of euro) and the exercise price of $1.55 per euro. Question 18 (5 points) Saved What action should Pandora corporation take to hedge its euro payable ifilit uses currency options? Buy currency call options on euros, O Buy currency put optionslon euros Sell currency call options on euros.|| Question 19 (5 points) Saved At the spot rate at the time of maturity (iellon December 15th, 2020) is $1.56 per lll euro. What is the total amount paid by the Pandora corporation if it acts rationally after accounting for the premium paid) when it uses apprppriate currency options identified in the first question to hedge the payable
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