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Spot: NOK 8.0000/USD Forward: NOK 8.2000/USD 12-Month USD Libor: +2.00% 12-Month NOK Libor: +8.00% WACC: 10.00% Call Option: strike price USD 0.125/NOK, premium USD 0.0025/NOK

Spot: NOK 8.0000/USD

Forward: NOK 8.2000/USD

12-Month USD Libor: +2.00%

12-Month NOK Libor: +8.00%

WACC: 10.00%

Call Option: strike price USD 0.125/NOK, premium USD 0.0025/NOK

Put Option: strike price USD 0.215/NOK, premium USD 0.0035/NOK

image text in transcribed

Question 22 1 pts You will PAY NOK 80M in 1 year. You decide to hedge with options. Compute your USD cost if the spot rate in 1 year is NOK 7.1/USD. BE EXTRA CAREFUL! the strike price of the option is USD 0.125/NOK. Round to the nearest dollar. Question 23 1 pts You will PAY NOK 80M in 1 year. You decide to hedge with options. Compute your USD cost if the spot rate in 1 year is NOK 8.7/USD. BE EXTRA CAREFUL! the strike price of the option is USD 0.125/NOK. Round to the nearest dollar

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