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You want you to sell 1.36 million British pounds (GBP) using put options and foreign exchange market. How much would be the net proceeds to
You want you to sell 1.36 million British pounds (GBP) using put options and foreign exchange market. How much would be the net proceeds to sell GBP1.36 million if the spot rate is A$1.6087 at the maturity (i.e., after 5 months)? (enter the whole number without sign and symbol). Contingency graph for purchasers of British pound put options Exercise price = A$1.50 Premium = A$0.03 +A$0.06 +A$0.04 +A$0.02 Contingency graph for purchasers of British pound call options +A$0.06 Exercise price = A$1.50 +A$0.04 Premium = A$0.02 +A$0.02 Future Spot Rate +++ AS1.46 AS1 ABASI 50451 52 A$1.54 -A80.02 Future spot rate Net profit per unit Net profit per Unit A$1.46 AS 18 AS1.50AS1 52 A81 54 A$0.02 -A$0.01 A$0.04 A$0.06 -A$0.06 Contingency graph for sellers of British pound call options +A$0.06 Exercise price = A$1.50 +A$0.04 Premium = A$0.02 +A$0.06 +A$0.04 +A$0.02 Contingency graph for sellers of British pound put options Exercise price = A$1.50 Premium = A$0.03 +A$0.02 Net profit per unit Net profit per unit -A$0.02 A$1 46AS1 A8 AS1,50 AS1.529154 Future spot rate -A$0.02 AS16 AS1 48 A$1.50AS1.52 AS1.54 Future spot rate -A$0.04 --A$0.04 -A$0.06 A$0.06
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