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You have to pay 100,000 in 180 days. The current spot rate, S($/), is 1.50. Canadian interest rates are 6%. Available are put options on
You have to pay 100,000 in 180 days. The current spot rate, S($/), is 1.50. Canadian interest rates are 6%. Available are put options on the with a strike price of 1.45 $/ and call options on the with a strike price of 1.55 $/. The cost of the put options is 2%, and that of the call options is 3%. You want to keep your costs low. Using the available information, describe one way in which you can accomplish this. Calculate the current and future cash flows.
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