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The outcome of a options market hedge for C$200,000 accounts payable due in 6 months is...

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Finance

The outcome of a options market hedgefor C$200,000 accounts payable due in 6 months is when optionsstrike price and the premium are $0.9850 and $0.01 respectively andthe us and the C$ interest rates are 3.0% and 3.5% respectively:Explain.

               a.            $199,030                                              b.            $199,035

               c.            $199,030 or less                                 d.            $199,035 or less

               d.            none of the above

  

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Transcribed Image Text

The outcome of a options market hedgefor C$200,000 accounts payable due in 6 months is when optionsstrike price and the premium are $0.9850 and $0.01 respectively andthe us and the C$ interest rates are 3.0% and 3.5% respectively:Explain.               a.            $199,030                                              b.            $199,035               c.            $199,030 or less                                 d.            $199,035 or less               d.            none of the above  

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