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Suppose you are a Champagne export from France and have the option to sell your 100,000 bottles of Champagne in the USA or France. In
Suppose you are a Champagne export from France and have the option to sell your 100,000 bottles of Champagne in the USA or France. In the States you will get $50 US per bottle and in France you will get 40 Euros per bottle. The current exchange rate is 1.200 USD/Euro and you will make your sale decision in 6- months time. What is the exercise price of your call option on the USD? (Units are Euros/USD)
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