Question
QUESTION 10 A US exporter is due to receive 2m in 6 months time from a German customer. The exporters bank has offered the following
QUESTION 10
- A US exporter is due to receive 2m in 6 months time from a German customer.
The exporters bank has offered the following 6 months options on the 2m:
Put options are quoted as US$(cents) per Euro (1)
Exercise price premium
115.00 1.32
116.00 1.58
117.00 2.20
118.00 3.33
Calculate the premium payable by the US exporter?
|
| A. | US$31,600 |
|
| B. | US$44,600 |
|
| C. | US$66,600 |
|
| D. | US$26,400 |
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
