Sir can u Please tell me that how the cross exchange rates is finded in Sep 2018 paper washing Co???
1 EUR buys 92.7 ARD, and 132.4 JPY will buy 1 EUR
Therefore 132.4 JPY will buy 92.7 ARD
Therefore 1 JPY will buy 92.7/132.4 = 0.70 ARD
It is the same logic for the other rate 🙂
Sir, i would like to ask why is 0.70 chosen as the rate and not the other rate 0.74?
In washi co sep 2018 its a euro recipt why he choses the put option
can u explain that please
Washi is receiving Euros, and so wants to sell Euros (and buy JPY).
The option contracts are quoted in Euro (the contract size is in Euros) and therefore they want to sell Euro contracts, and selling is a put option.
I do suggest that you watch my free lectures on foreign exchange risk management.
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