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Purchase the June call option to protect against a weakening € and because receipt is expected at the end of May 2016 or beginning of June 2016.
Where did they get End of MAY 2016 from? I can’t understand that part please thanks.
In the first paragraph of the question you are told that ‘today’ is 1 March 2016.
Under ‘sale of equity investment in the European country’ in the question, you are told that they will receive 20M euro is 3 months time.
3 months from 1 March is 1 June.
1 June and 31 May are effectively the same day – nobody is worried about a difference of 1 day!!
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