Your firm has an accounts payable worth C$200,000 due in six months. The firm uses money market hedge against currency risk. If the spot rate on C$ is $0.9450 and the interest rates on C$ and US$ are 4% and 3% respectively, what is the locked in cost for the accounts payable under this hedge?

Your firm has an accounts payable worth C$200,000 due in six months. The firm uses forward market hedge against currency risk. If the six-month forward rate on C$ is $0.9550 and the interest rates on C$ and US$ are 4% and 3% respectively, The locked in cost for the account receivable under this hedge is $191,000.

True/False:

A June 17 put option on British pound with strike price of $1.2230 is priced at $0.0275. If the spot rate is $1.2300, the intrinsic value of this options is