Histolab has a Canadian dollar (CAD) denominated receivable in 180 days with the amount of...

60.1K

Verified Solution

Question

Finance

image
Histolab has a Canadian dollar (CAD) denominated receivable in 180 days with the amount of CAD 616,000. The spot rate is USD 0.7803/CAD. The 180-day forward rate is USD 0.9361/CAD. Histolab has been offered with European call and put options on the Canadian dollar. The call option has a strike price of USD 0.8931 and a premium of USD 0. 11. The put option has a strike price of USD 0.9234 and a premium of USD 0.07. If the spot rate of CAD in 180 days is 0.7605 US dollars, find the net receivable if the company acts rationally, of a. 400,708 b. 525,694 C. 468,468 d 568,814

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students