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hello sir I have a silly doubt for currency options question like for this one what is and why have they calculated 50600000/1.06 = 4773585 when it is not used anywhere for calculating the payment amount…similarly in june 2016 Lirio Co. in currency options why do we calculate 20million/ 0.86 = 23255814$ when its not used anywhere for the calculation if the recieved amount.
thanks alot
They need to convert to CHF in order to calculate how many options contracts to buy (they divided the amount by the contract size and then round to the nearest contract).
Have you watched my free lectures on the use of options?There are lectures working through the whole of the CMC question. You can find them if you follow the Revision Kit Live link from the main P4 page.
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