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please answer EXACTLY how requested in question or borrow at 2% per annum above those rates. A 6-month call option on won with a Won1,200/$
please answer EXACTLY how requested in question
or borrow at 2% per annum above those rates. A 6-month call option on won with a Won1,200/\$ strike rate has a 3.5% premium, while the 6 -month put option at the same strike rate has a 2.9% premium. a. How much in U.S. dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won 1,115/$ ? Won 1,174/$? b. How much in U.S. dollars will Bobcat pay in 6 months with a forward market hedge? c. How much in U.S. dollars will Bobcat pay in 6 months with a money market hedge? d. How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won 1,200/$ ? To be Won 1,300/$? e. What do you recommend? a. How much in U.S. dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won 1,115/$ ? g (Round to the nearest cent.) How much in U.S. dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won 1,174/$ ? $ (Round to the nearest cent.) b. How much in U.S. dollars will Bobcat pay in 6 months with a forward market hedge? $ (Round to the nearest cent.) c. How much in U.S. dollars will Bobcat pay in 6 months with a money market hedge? (Round to the nearest cent.) d. How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won 1,200/$ ? g (Round to the nearest cent.) How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be Won 1,300/$ ? $ (Round to the nearest cent.) e. What do you recommend? (Select from the drop-down menu.) The provides the lowest certain cost hedging method for payment settlementStep by Step Solution
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