You are planning to buy a giant Xiaomi television for 2,412 directly from the company in China
Fantastic news! We've Found the answer you've been seeking!
Question:
Assume that you bought the call option. When the release date comes, the spot exchange rate is ¥7/$. How much better off (in terms of US Dollars) are you AT THE MARGIN if you exercise the option versus paying for the TV by exchanging your money on the spot market on the release date? Enter a negative number if you're worse off. Round to two decimal places.
Would you have been better off having never purchased the option? Why or why not?
Related Book For
Analyzing Data And Making Decisions Statistics For Business Microsoft Excel 2010 Updated
ISBN: 9780132924962
2nd Edition
Authors: Judith Skuce
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