You hold a USD62,500 put futures option which you bought to hedge a USD receivable due in 90 days The option has a strike price of AUD0 94 USD and a premium of AUD0 0553 USD Your observe the following quotes in the market USD futures rate AUD0 58 USD USD spot rate AUD0 67 USD If you choose to exercise the futures option today, what is the net cash gain or loss you will receive a AUD 16875 00 b AUD13418 75 c AUD19043 75 d AUD22500 00 e AUD 25956 25

Question

You hold a USD62,500 put futures option which you bought to hedge a USD receivable due in 90 days  The option has a strike price of AUD0 94 USD and a premium of AUD0 0553 USD  Your observe the following quotes in the market  USD futures rate  AUD0 58 USD USD spot rate  AUD0 67 USD If you choose to exercise the futures option today, what is the net cash gain or loss you will receive  a  AUD  16875 00 b  AUD13418 75 c  AUD19043 75 d  AUD22500 00 e  AUD 25956 25

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Question

You hold a USD62,500 put futures option which you bought to hedge a USD receivable due in 90 days. The option has a strike price

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