Question
Suppose that $2 = 1, $1.60 = 1, and the cross-exchange rate is 1.25 = 1.00. If you own a call option on 10,000 with
Suppose that $2 = 1, $1.60 = 1, and the cross-exchange rate is 1.25 = 1.00. If you own a call option on 10,000 with a strike price of $1.50, you would exercise this option at maturity if
a) the $/ exchange rate is at least $1.60/
b) the / exchange rate is at least 1.25/.
c) the $/ exchange rate is at least $1.60/.
d) none of the options
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Corporate Finance With Connect Access Card
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
10th Edition
1259672484, 978-1259672484
