Lkl corporation will need 225000 canadian dollars c in 90


LKL Corporation will need 225,000 Canadian dollars (C$) in 90 days to cover a payable position. Currently, a 90-day call option with an exercise price of $.75 and a premium of $.01 is available. Also, a 90-day put option with an exercise price of $.73 and a premium of $.01 is available. LKL plans to purchase options to hedge its payable position. Assuming that the spot rate in 90 days is $0.67, what is the net amount paid, assuming LKL wishes to minimize its cost?

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Financial Management: Lkl corporation will need 225000 canadian dollars c in 90
Reference No:- TGS02151413

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