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Q. |
A UK corporation has purchased currency call options to hedge a 70,000 dollar payable. The premium is £0.015 and the exercise price of the option is £0.54. If the spot rate at the time of maturity is £0.59, what is the total amount paid by the corporation if it acts rationally? |
A. | £36,750 |
B. | £1,050 |
C. | £37,800 |
D. | £38,850 |
Answer» D. £38,850 |
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