A U.S. corporation has purchased currency put options to hed…

Questions

A U.S. cоrpоrаtiоn hаs purchаsed currency put options to hedge a 100,000 Canadian dollar (C$) receivable. The premium is $.01 and the exercise price of the option is $.76. If the spot rate at the time of maturity is $.86, what is the net amount received by the corporation if it acts rationally?

A U.S. cоrpоrаtiоn hаs purchаsed currency put options to hedge a 100,000 Canadian dollar (C$) receivable. The premium is $.01 and the exercise price of the option is $.76. If the spot rate at the time of maturity is $.86, what is the net amount received by the corporation if it acts rationally?

A U.S. cоrpоrаtiоn hаs purchаsed currency put options to hedge a 100,000 Canadian dollar (C$) receivable. The premium is $.01 and the exercise price of the option is $.76. If the spot rate at the time of maturity is $.86, what is the net amount received by the corporation if it acts rationally?

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