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Space-X Corporation, located in the United States, has an accounts payable obligation of 750 million payable in one year to Mitsubishi Electric of Japan.
Space-X Corporation, located in the United States, has an accounts payable obligation of 750 million payable in one year to Mitsubishi Electric of Japan. The current spot rate is 116/$ and the one year forward rate currently is 115/$. However, it is expected that the actual spot rate one year from now could be 118/$. The annual interest rate is 3 percent in Japan and 6 percent in the United States. One-year Call Options on \ (one Option round-lot 1,000,000) with a Strike/Exercise Price of $0.0086/ are currently trading at the Philadelphia Stock Exchange (PHLX) for a premium of 0.012 cents/\. Total premium that needs to be paid is: OA. $642,856.80 B. $110,523.80 OC. $108,433.20 OD. $180,000.00
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