ium of $US0.002/$A. Calculate and graphically depict the profits/losses for this call option position for the following spot prices at exercise date: $US0.7475/$A, $US0.7550/$A, $US0.7600/$A, $US0.7700/$A, and $US0
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Consider the position of a call writer who sold a call option on Australian dollars at an exercise price of $US0.7600/$A, and a premium of $US0.002/$A. Calculate and graphically depict the
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- Consider the position of a call writer who sold a call option on Australian dollars at an exercise price of $US0.7600/$A, and a premium of $US0.002/$A. Calculate and graphically depict the profits/losses for this call option position for the following spot prices at exercise date: $US0.7475/$A, $US0.7550/$A, $US0.7600/$A, $US0.7700/$A, and $US0.7800/$A.Consider the position of a call writer who sold a call option on Australian dollars at an exercise price of $US0.7600/$A, and a premium of $US0.002/$A. Calculate and graphically depict (excel) the profits/losses for this call option position for the following spot prices at exercise date: $US0.7475/$A, $US0.7550/$A, $US0.7600/$A, $US0.7700/$A, and $US0.7800/$A.You purchased a put option on Australian dollars for RM0.02 per unit. The strike price was RM4.25, and the spot rate at the time the option was exercised was RM4.38. Assuming that there are 13,830 units in the Australian dollar option.Would you exercise the option? What will your net profit on the put option?
- Your options trading strategy involves buying a European put with a strike price of ₺10 for ₺0.50 and aEuropean call with a strike price of ₺25 for ₺0.75 and selling a European put with a strike price of ₺15 for₺1.25 and a European call with a strike price of ₺20 for ₺1.50. The expiry date and the underlying asset isidentical for each of the four options. Draw the profit diagram for this strategy and indicate the maximumprofit/loss levels and break-even price levels. Show the details of your intermediate calculations.You have entered in a put option contract on British pound at a price of $0.04 per British pound. When the option was exercised the dollar was selling of 0.63 British pound. Compute your net profit from the option if the exercise price was $1.80 and size of option is 50,000. a. $8,634. b. Pound 8,634. c. $56,5 d. Pound 56,5 00009292d 56,500Mender Co. will be receiving 700,000 Australian dollars in 180 days. Currently, a 180-day call option with an exercise price of $.74and a premium of $.02 is available. Also, a 180-day put option with an exercise price of $.72 and a premium of $.02 is available. Mender plans to purchase options to hedge its receivables position. Assume that the spot rate in 180 days is $.73. (1) Should the company use call options or put options? Why? (2) Calculate the amount received from the currency option hedge (after considering the premium paid). (3) Would the company have received more without hedging?
- FAB Corporation will need 200,000 Canadian dollars (C$) in 90 days to cover a payable position. Currently, a 90-day call option with an exercise price of $.75 and a premium of $.01 is available. Also, a 90-day put option with an exercise price of $.73 and a premium of $.01 is available. FAB plans to purchase options to hedge its payable position. Assuming that the spot rate in 90 days is $.71, what is the net amount paid, assuming FAB wishes to minimize its cost? A. $152,000. B. $144,000. C. $150,000. D. $148,000.Assume that the Japanese yen is trading at a spot price of 92.04 cents per 100 yen. Further assume that the premium of an American call (put) option with a strike price of 93 is 2.10 (2.20) cents. Calculate the intrinsic value and the time value of the call and put options.Choose all expressions that accurately complete the statement below: Writing a European call option on £10,000 at a strike price of $1.80/£ and a premium of $0.02/£: Group of answer choices Obligates the optionholder to purchase £10,000 for $18,000 USD. Will be profitable for the seller when the price of the GBP exceeds the put-call parity rate. Obligates the writer to sell £10,000 on the expiration date if the optionholder chooses to exercise. Allows the optionholder to exercise the option at any point up to the expiration date. Earns the seller a premium of $200.
- Can I kindly get part d and e. The following data are taken from the financial market pages of an Australian newspaper.Forward MarginsForward Contract Forward Margins (Buy A$/Sell A$)1 month 0/12 month 1/23 month 1/36 month 2/41 year 0/12 years -16/-83 years -51/-11The data under the “Forward Margins” column represent the forward contracts for the USdollar with respect to the Australian dollar (given in points form).(a) Using this data, and the bid-ask for spot USD at 0.7144 to 0.7145, compute the outrightbid/ask rates for the following forward contracts:(i) 1 month(ii) 6 month(iii) 2 years(iv) 3 years(b) Calculate the forward premium for the following contracts:(i) 2 month(ii) 3 month(iii) 6 month(iv) 1 year c) You expect to receive US$ 70,000 in 6 months. What amount in A$ will that convert intoof you use the above forward rates? d) You need to buy US$ 500,000 in 2 years. How many A$ will you need if you use theforward rates above? e) What do the forward rates indicate in terms of…On the basis of the following information, calculate the price of a call option on the Australian dollar: Spot exchange rate (USD/AUD) 0.75 Exercise exchange rate (USD/AUD) 0.70 Interest rate on the US dollar (per cent per annum 8 Interest rate on the Australian dollar (per cent per annum) 10 Time to expiry 90 Standard deviation (per cent) 10 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.MNC needs 400,000 Canadian dollars (C$) in 60 days to cover a payable position. There is a 60-day call option with an exercise price of $.75 and a premium of $.01 is available and a 60-day put option with an exercise price of $.73 and a premium of $.01 is available. MNC plans to purchase options to hedge its payable position. Assuming that the spot rate in 60 days is $.71, what is the net amount paid? Group of answer choices $288,000. $296,000. $304,000. $300,000.