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Net amount received by the corporation

A U.S. corporation has purchased currency put options to hedge a 100,000 Canadian dollar (C$) receivable. The premium is $.01 and the exercise price of the option is $.75. If the spot rate at the time of maturity is $.85, what is the net amount received by the corporation if it acts rationally?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Net amount received by the corporation

Reference No:- TGS0680311

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What is the after-tax cost of debt financing

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Q : Calculate the maximum amount the company

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Q : Net amount received by the corporation

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Net amount received by the corporation

Reference No:- TGS0680311

Recent Questions Asked Finance Basics

Q : What is the after-tax cost of debt financing

Q : Profit from triangular arbitrage

Q : Calculate the maximum amount the company

Q : Determine the direct materials price variance

Q : Net amount received by the corporation

Q : Expected number of passengers-poisson process

Q : What is the net present value of this investment

Q : Trust fund prepared two financial statements

Q : Budgeting play in financial planning

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