The strike price on a Brazilian real (BRL) put option is [st…
The strike price on a Brazilian real (BRL) put option is [strike] cents, and each contract represents BRL 100,000 real. If the ultimate settlement of the Brazilian real is [settle] cents at expiry, what is the gross payoff of this contract (in USD)? Please input your answer as a whole number of dollars with no decimals. (Eg. $2,000 would be 2000)
Read DetailsAssume a multinational conglomerate purchases 500 PUT OPTION…
Assume a multinational conglomerate purchases 500 PUT OPTIONS for June delivery on the British pound (GBP) with a strike price of $1.42 per pound. If the pound ends up $1.37 per pound at expiry, the cost of each option was $0.0078 per pound, and each contract represents £62,500 underlying… What are the net proceeds of this put option position?
Read DetailsA U.S. company is considering a Canadian acquisition for CAD…
A U.S. company is considering a Canadian acquisition for CAD 5 million in two years’ time. The current rate for the Canadian dollar is $0.7230 per CAD. If the company buys 50 call options representing CAD 100,000 each – and each with a strike price of $0.7250 and a premium of $0.0105 per CAD… What would be the HEDGED (ie. including option values) cost of the acquisition be if the Canadian dollar rose to $0.76 per CAD?
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