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Spot: NOK 8.0000/USD Forward: NOK 8.2000/USD TI Att 33 12-month USD Libor: +2.00% 12-month NOK Libor: +8.00% WACC: 10.00% Call option: strike price USD 0.125/NOK,

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Spot: NOK 8.0000/USD Forward: NOK 8.2000/USD TI Att 33 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 0.125/NOK, premium USD 0.0035/NOK You will PAY NOK 8OM in 1 year. What will be your cost in USD if you hedged with a FORWARD and the spot rate in 1 year is NOK 8.2/USD? Round to the nearest dollar

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