Solved: The premium is 005 the exercise price is 050 if the option, Finance Basics

+44 141 628 6080
[email protected]

The premium is 005 the exercise price is 050 if the option

A firm wants to use an option to hedge 12,000,000 in receivables from New Zealand firms. The premium is $0.05. The exercise price is $0.50. If the option is exercised, what is the total amount of dollars received (after accounting for the premium paid)?

Solution Preview :

Prepared by a verified Expert

Finance Basics: The premium is 005 the exercise price is 050 if the option

Reference No:- TGS02890639

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : You need to purchase sf200000 in 360 days if you use a

the forward rate of the swiss franc is 50 the spot rate of the swiss franc is 046 the following interest rates

Q : Problem hershey inc needs 1180000 in 30 days delaney can

problem hershey inc needs euro1180000 in 30 days delaney can earnnbsp003 annualized on a german security the current

Q : Listed below are the estimated cash flows the norwegian

assume that taps corporation is considering the establishment of a subsidiary in norway the initial investment required

Q : Delaney inc needs 1180000 in 30 days delaney can earn 003

delaney inc needs euro1180000 in 30 days delaney can earnnbsp003 annualized on a german security the current spot rate

Q : The premium is 005 the exercise price is 050 if the option

a firm wants to use an option to hedgenbsp12000000 in receivables from new zealand firms the premium is 005 the

Q : If the spot rate at the time of maturity is 075 what is the

a us corporation has purchased currency put options to hedge anbsp100000 canadian dollar c receivable the premium is

Q : Logic inc needs 1180000 in 30 days delaney can earn 003

logic inc needs euro1180000 in 30 days delaney can earnnbsp003 annualized on a german security the current spot rate

Q : Assuming that the spot rate in 90 days is 075 what is the

canenbspcorporation will neednbsp201000 canadian dollars c in 90 days to cover a payable position currently a 90-day

Q : The current exchange rate of the norwegian kroner is 135

assume that trix corporation is considering the establishment of a subsidiary in norway the initial investment required

1925502

Questions
Asked

3,689

Active Tutors

1458739

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Revenue variance for october would be closest to

The revenue variance for October would be closest to: Group of answer choices $2,640 U $2,640 F $1,224 U $1,224 F

What is allied industries receivable collection period

What is Allied Industries' receivable collection period (rounded to the nearest day)? 156 O 590 300 O 150

Brand equity can be measured in a number of ways

Brand equity can be measured in a number of ways, but the 3 most common methods are which of the following? Select all that apply.

Spending variance for direct materials in august would be

The spending variance for direct materials in August would be closest to: Group of answer choices $524 F $20 F $20 U $524 U

What is their qbi deduction for the year

Tara and Todd are married. Tara is a lawyer who operates her practice as a sole proprietorship. Todd works for a local architecture firm.

What is the quick ratio for picasso paint supply

It also has $50,000 in current liabilities and $75,000 in long-term liabilities. What is the quick ratio for Picasso's Paint Supply?

Statements about asking questions during a meeting

Which of the following statements about asking questions during a meeting is true? Question Answer