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Homework answers / question archive / An Australian MNC needs to purchase ¥5,000,000
An Australian MNC needs to purchase ¥5,000,000. The current quoted nominal bid/ask spread for ¥ is A$0.0065-A$0.0062. How many A$ are needed to buy ¥5,000,000? A. A$ 31,000 B. A$ 32,500 C. A$ 230,769 D. A$ 769,230,769 E. A$ 806,451,613
An Australian company has purchased currency call options to hedge a 230,000 Brazilian Real payable. The premium is A$.035 and the exercise price of the option is A$.30. If the spot rate at the time of maturity is A$.60, what is the total amount paid by the corporation if it acts rationally? A. A$146,050. B. A$69,000. C. A$60,950. D. A$138,000. E. A$77,050.
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