A U.S. company, Polar Bear Inc, wants.To use an option to hedge 12.5 million NZD (New Zealand
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Question:
The premium on the option is $.03 (meaning, in long hand, that the option premium is 0.03 USD per NZD). The exercise price is $.55 (meaning, in long hand, that the exercise price is 0.55 USD per NZD).
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