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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
Question 3 1 pts You have just invested USD 1M in the "carry trade" (you have borrowed USD 1M and you have invested in the NOK). What will be your profit/loss if the exchange rate is NOK 8.4/USD one year from now? enter profits as +, enter losses asStep by Step Solution
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