Question
Your small US multinational business has a 48,000 Euro revenue in 6 months. You hedge 100% of the purchase using a put option with the
Your small US multinational business has a 48,000 Euro revenue in 6 months. You hedge 100% of the purchase using a put option with the strike price set at the EUR forward rate of 1.10. (The premium cost of the put option is assumed to be $50 for this question). If the actual EUR foreign exchange rate in 6 months is 1.27, then what is the US dollar gain or loss on your hedged exposure?
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Investing In Justice An Introduction To Legal Finance Lawsuit Advances And Litigation Funding
Authors: Max Volsky
1st Edition
0988510502, 978-0988510500
