Reciept of 80 m euros. Home currency is yen , foreign currency is euros.
As per my knowledge rule is receipt of foreign currency means we have to buy home currency ie call options. So why are they taking put options . Im confused pls help sir
Also pls explain these calculations:
Spot cross rates: 0.70 – 0.74 ARD per JPY 1
[92.7/132.4 = 0.70 and 95.6/129.2 = 0.74]
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WASHI CO (SEP 18)
4y ago#1I have answered your first question in your previous post.
As regards your second question, see the explanation in a previous reply here:
https://opentuition.com/topic/cross-rates-washi-sep-2018-kaplan-exam-kit/#post-596059
why they have choosen the specific combination why not both lowest and both highest?
4y ago#3Have you read the post that I linked to carefully, because the logic is explained in my reply in that post?
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