You buy an HK$1 million call option on Hong Kong dollars with an exercise price of $0.1667/HK$.

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You buy an HK$1 million call option on Hong Kong dollars with an exercise price of $0.1667/HK$. The spot rate at expiration is $0.1685/HK$. What is the value of your option at expiration?

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Multinational Finance Evaluating Opportunities Costs and Risks of Operations

ISBN: 978-1118270127

5th edition

Authors: Kirt C. Butler

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Question Posted: Mar 25, 2016 07:13 AM

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You buy a $1 million call option on U.S. dollars with an exercise price of $0.1667/HK$. The spot price at expiration is $0.1685/HK$. What is the value of your option at expiration?
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You buy an HK$1 million call option on Hong Kong dollars with an exercise price of $0.1667/HK$.

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Multinational Finance Evaluating Opportunities Costs and Risks of Operations

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