Intro Delphi is a U.S. car parts company importing parts from Japan. The company will need 11 million yen (¥) in one yea

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Intro Delphi Is A U S Car Parts Company Importing Parts From Japan The Company Will Need 11 Million Yen In One Yea 1 (226.89 KiB) Viewed 27 times

Intro Delphi is a U.S. car parts company importing parts from Japan. The company will need 11 million yen (¥) in one year to pay its suppliers. A call option on yen expiring in one year costs $0.00044 per yen and has an exercise price of $0.0083 per yen. The U.S. interest rate is 2%. Part 1 | Attempt 2/3 for 10 pts. What is the total cost if the company uses the call option hedge and the spot rate ends up $0.0087 in one year (in $)? 0+ decimals Submit Part 2 Attempt 1/3 for 10 pts. What is the total cost if the company uses the call option hedge and the spot rate ends up $0.0079 in one year (in $)? 0+ decimals