- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi John,
The calculation of option premium payable €674250.the spot rate is $/€ 1.1585-1.1618. the company needs to sell € buy $. so it should be 674250×1.1585 while examiner used 674250×1.1618, why? later, he used forward 1.1559 x 5000(which was not hedged by options), not 1.1601. I get confused. Can you please help? Thanks.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.