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Thank you… I was suggesting that some part of the profit will be deferred as defer income…
Thanks once againA UK company owes a US supplier $1,000,000 payable in April.
The spot rate is $/£ 1.4850 – 1.4870 and the UK company is concerned that the $ might strengthen.
Traded options are available at prices as shown in the following table:
$/£ Options £31,250 (cents per £1)
Calls Puts
Strike price Mar Apr May Mar Apr May
1.425 6.29 6.32 6.49 0.02 0.14 0.45
1.450 3.81 4.17 4.54 0.03 0.48 0.98
1.475 1.53 2.45 2.92 0.13 1.20 1.84
(a) Show how traded $/£ currency options can be used to hedge the risk at 1.475.Sir this was in one of ur lectures… what doubt me was when u were calculating the premium you used 1.4850 rather than 1.4870.since the premium is a payment i think we should used the higher spot rate of 1.4870?
Hello Ken…
I still don’t had from u pls bse I don’t know where that 0.1 came from which was used to divide the spare capacity to get the 10000 speakers… And that 0.1 was multiply with the 2000 to get the 200 … I real don’t understand these movements…oh great… Would you mind giving me an eg a EoM which could be included in KAM how it may appear …
Thankswell noted… but i when through the article, but still i could not know how they arrived at the net receipt and the minimum return,plus the 4.05%.Any time i look at this question it confused me … your lectures really motivated me to choose p4…
John am so glad about your timely assistance…it really cleared my doubt.
Troder(SFM,6/03)
I really dont understand how the rearrange the call strike price and how they came up with the put strike price… anyway how they make the calculations real confuse me…
Thanks once again for timely assistance…
How to identify the three lenses in a scenario is always my problem.Would you mind pls to tell me the techniques how to identify them in a big scenario
Did any one knows people with only OBU degree secured a place for masters straight with accredited universities?
Good topic… What i was thinking is unmodified and unqualified is referring to the same thing…
