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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › GOGATH CO (MAR/JUN 21)
Why is the unhedged amount in Options Contracts converted on 0.2374 and not 0.2370?
And why is the premium on options paid on 0.2355 and not 0.2358?
1. They have overhedged so they end up with too many dollars and so they need to sell the excess dollar and covert them to Ringits
2. The options are priced in US$, so they need to buy $’s in order to pay for the options.
Okay Sir, Thank You!
You are welcome.