Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work how you got the answer Assume you are a US exporter with an account receivable denominated in Singapore dollars to be paid

image text in transcribed

please show work how you got the answer

Assume you are a US exporter with an account receivable denominated in Singapore dollars to be paid to you in one year, in the amount of SGD 815,635. The current spot rate is 0.71 USD per SGD. You have decided to hedge using a put option, with an exercise price of 0.72 and a premium of 0.04. What would be the hedged US dollar amount of the receivable if in one year the spot rate is 0.75 USD per SGD? Enter your answer with no decimals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Regulation In The Global Economy

Authors: Richard J. Herring , Robert E. Litan

1st Edition

0815791550, 9780815752837, 9780815791553

More Books

Students also viewed these Finance questions