An Oman multinational company is buying an asset from a Britain company for 1 million GBP and the payment to be made after 3 months. The company expects the Pound to go up in the future by the time deal is completed. So it decides to purchase an option at OMR 0.5187/GBP with a 7% premium. The actual rate after 3 months was found to be OMR 0.5391/GBP.   What will be the profit made by the company on the execution of the option after 3 months?   a. 10400 b. 20400 c. 11128 d. 12581

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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An Oman multinational company is buying an asset from a Britain company for 1 million GBP and the payment to be made after 3 months. The company expects the Pound to go up in the future by the time deal is completed. So it decides to purchase an option at OMR 0.5187/GBP with a 7% premium. The actual rate after 3 months was found to be OMR 0.5391/GBP.

 

What will be the profit made by the company on the execution of the option after 3 months?

 

a.
10400
b.

20400

c.

11128

d.

12581

e.
All the options are wrong
Clear my choice
 
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