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U.S. dollar/Japanese Yen. What would be the premium expense, in home currency, for a Japanese firm to purchase an option to sell 750,000 U.S. dollars,
U.S. dollar/Japanese Yen. What would be the premium expense, in home currency, for a Japanese firm to purchase an option to sell 750,000 U.S. dollars, assuming the initial values listed in this table: ? The premium expense, in home currency, is . (Round to two decimal places.) Variable Variable Value SO SO $ 0.0095 $ 0.0100 x Value JPY 105.64 JPY 100.00 0.089 % 1.453 % 1.000 rd rd 1.453 Spot rate (domestic/foreign) Strike rate (domestic/foreign) Domestic interest rate (% p.a.) Foreign interest rate (% p.a.) Time (years, 365 days) Days equivalent Volatility (% p.a.) % rf % rf T 0.089 1.000 365.00 12.000 365.00 12.000 % S % 0.0003 Call option premium (per unit fc) Put option premium (per unit fc) (European pricing) JPY 7.2682 JPY 3.0620 p $ 0.0007 6.8802 % 3.0730 % Call option premium (%) Put option premium (%) 2.8990 % 7.2860 %
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