Question
You are buying a put option to hedge yourself from exchange rate fluctuations. The option has a strike price of 0.90/$. You will receive 1,000,000
You are buying a put option to hedge yourself from exchange rate fluctuations. The option has a strike price of 0.90/$. You will receive 1,000,000 from a customer in 3-months from now. The future value of the premium is $3,200. If the spot rate in three months is 0.95/$ decide whether you exercise the put option and calculate your cash inflow.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
