Alcoa has DKr 3 million receivable due in 6 months. The following information on Dkr options are available: 6-month put option with a strike price of $.1745 is priced at $0.004 and a 6-month call option with a strike price of $0.1750 is priced at $0.005. If Alcoa executes options to hedge, what value for receivables it can lock in?

Answer rating: 100% (QA)

To hedge the receivable due in 6 months Alcoa can use options to lock in a specific value Lets calcu... View the full answer