U.S. Dollar-Japanese Yen. What would be the premium expense, in home currency, for a Japanese firm...
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U.S. Dollar-Japanese Yen. What would be the premium expense, in home currency, for a Japanese firm to purchase an option to sell 700,000 U.S. dollars, assuming the initial values listed in this table: The premium expense, in home currency, is (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Pricing Currency Options on the Japanese Yen A Japanese firm wishing to buy A U.S.-based firm wishing to buy or sell dollars (the foreign currency) Variable Value or sell yen (the foreign currency) Variable Value Spot rate (domestic/foreign) Strike rate (domestic/foreign) So JPY 105.84 So $ 0.0095 X JPY 100.23 X $ 0.0100 Domestic interest rate (% p.a.) rd 0.088 % rd 1.455 % Foreign interest rate (% p.a.) rf 1.455 % rf 0.088 % Time (years, 365 days) T 1.000 T 1.000 Days equivalent 365.00 365.00 Volatility (% p.a.) S 12.000 % 12.000 % Call option premium (per unit fc) C JPY 7.2544 Put option premium (per unit fc) (European pricing) P JPY 3.0810 C $ 0.0003 $ 0.0007 Call option premium (%) C 6.8539 % C 3.1530 % Put option premium (%) P 2.9110 % P 7.0900 % Print Done - X U.S. Dollar-Japanese Yen. What would be the premium expense, in home currency, for a Japanese firm to purchase an option to sell 700,000 U.S. dollars, assuming the initial values listed in this table: The premium expense, in home currency, is (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Pricing Currency Options on the Japanese Yen A Japanese firm wishing to buy A U.S.-based firm wishing to buy or sell dollars (the foreign currency) Variable Value or sell yen (the foreign currency) Variable Value Spot rate (domestic/foreign) Strike rate (domestic/foreign) So JPY 105.84 So $ 0.0095 X JPY 100.23 X $ 0.0100 Domestic interest rate (% p.a.) rd 0.088 % rd 1.455 % Foreign interest rate (% p.a.) rf 1.455 % rf 0.088 % Time (years, 365 days) T 1.000 T 1.000 Days equivalent 365.00 365.00 Volatility (% p.a.) S 12.000 % 12.000 % Call option premium (per unit fc) C JPY 7.2544 Put option premium (per unit fc) (European pricing) P JPY 3.0810 C $ 0.0003 $ 0.0007 Call option premium (%) C 6.8539 % C 3.1530 % Put option premium (%) P 2.9110 % P 7.0900 % Print Done - X
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