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Business, 16.04.2021 01:00 billydavey555

Suppose that you wish to hedge the exchange rate risk on a foreign receivable of 1,240,000 euros. You decide to do this with a long option whose underlying asset is the euro (I won't tell you whether it's a put or a call). If this option has a strike of $1.15/euro, a multiple of 10,000 euros, and a per-contract (i. e. per 10k euros) premium of $175, then what is the least number of dollars you could possibly expect to net from this hedged receivable

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Suppose that you wish to hedge the exchange rate risk on a foreign receivable of 1,240,000 euros. Yo...
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