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ull T-Mobile 2:11 AM 26%) International Finance (FIN 178) Final Homework Assignment! Due: End of Class on Tuesday, December 05 2. Lufthansa (a German company)

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ull T-Mobile 2:11 AM 26%) International Finance (FIN 178) Final Homework Assignment! Due: End of Class on Tuesday, December 05 2. Lufthansa (a German company) has just signed a contract with Boeing to purchase two new 747-400's for a total of $60,000,000, due three months (90-days) from today Lufthansa wants to cover the S60,000,000 account payable by purchasing call options The current spot rate is 1.25/S The 90-day call option (to buy dollars) has a strike price of 1.25/S and a premium of 0.03/S How much will it cost Lufthansa (in euros) to buy the 90-day call options to cover the $60,000,000 account payable? a. b. If the spot rate in 90-days is 1.35/S what is the cost of the $60,000,000 in euros ()? c. If the spot rate in 90-days is 1.1S/S what is the cost of the $60,000,000 in curos (E)

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