1. Histolab has a Canadian dollar (CAD) denominated payables in 180 days with the amount of CAD 691,000. The spot rate i
Posted: Thu May 19, 2022 7:06 am
1. Histolab has a Canadian dollar (CAD) denominated payables in
180 days with the amount of CAD 691,000. The spot rate is USD
1.4958/CAD. The 180-day forward rate is USD 1.2019/CAD. Histolab
has been offered with European call and put options on the Canadian
dollar. The call option has a strike price of USD 1.7703 and a
premium of USD 0.18. The put option has a strike price of USD
1.6696 and a premium of USD 0.17. If the spot rate of CAD in 180
days is 1.5108 US dollars, find the net payables if the company
acts rationally.
a.1,051,702
b.1,168,343
c.934,232
d.1,043,963
180 days with the amount of CAD 691,000. The spot rate is USD
1.4958/CAD. The 180-day forward rate is USD 1.2019/CAD. Histolab
has been offered with European call and put options on the Canadian
dollar. The call option has a strike price of USD 1.7703 and a
premium of USD 0.18. The put option has a strike price of USD
1.6696 and a premium of USD 0.17. If the spot rate of CAD in 180
days is 1.5108 US dollars, find the net payables if the company
acts rationally.
a.1,051,702
b.1,168,343
c.934,232
d.1,043,963