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Sing Tao wants to import goods for 2 . 2 9 million Australian dollar ( A$ ) and pay to Australian exporter, WA Co .
Sing Tao wants to import goods for million Australian dollar A$ and pay to Australian exporter, WA Co in one year. Sing Tao also wants to minimise its exchange rate risk for the payment of A$ million by taking the options market hedging strategy.
Calculate the maximum Chinese yuan CNY costs using the options market hedging strategy based on the information in Table Enter the whole number without sign and symbol
TABLE
For Chinese yuan CNY
Spot rate
A$CNY
Oneyear forward rate
A$CNY
Oneyear CNY deposit and borrowing rate
Oneyear call options
Exercise price A$
Premium A$
Oneyear put options
Exercise price A$
Premium A$
For Australian dollar A$
Spot rate
CNYA$
Oneyear forward rate
CNYA$
Oneyear A$ deposit and borrowing rate
Oneyear call options
Exercise price CNY
Premium CNY
Oneyear put options
Exercise price CNY
Premium CNY
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