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You are an American ($) exporter selling to Australia. The transaction size is 405,373 AUD due in 2 months. This option has an exercise price
You are an American ($) exporter selling to Australia. The transaction size is 405,373 AUD due in 2 months. This option has an exercise price of 0.89 and comes in contract sizes of 100,000 Au. How much would you eventually recieve for the goods if you hedged with options given the following data. Al numbers are $/Au. Note if you pay 100Au, the answer is 100, not -100. |
Now | 2 months from now | ||||
bid | ask | ||||
Spot | 1.055 | 1.068 | |||
Call | Put | Call | Put | ||
Options | 0.022 | 0.054 | 0.189 | 0 |
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