Question
You are the treasurer of Arizona Corp. and must decide how to hedge (if at all) a future receivable of 350,000 Australian dollars (AUD) 180
You are the treasurer of Arizona Corp. and must decide how to hedge (if at all) a future receivable of 350,000 Australian dollars (AUD) 180 days from now. Put options are available for a premium of $.02 per unit and an exercise price of .79 USD/AUD. Call options are available for a premium of $.03 with an exercise price of .82 USD/AUD. The forecasted spot rate of the Australian dollar in 180 days is: Future Spot Rate Probability
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AS Accounting For AQA
Authors: David Cox,Michael Fardon
2nd Edition
1905777140, 978-1905777143
