An Australian exporter WA Co. wants to export goods for 5.21 million Chinese yuan (CNY) and...

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An Australian exporter WA Co. wants to export goods for 5.21 million Chinese yuan (CNY) and receive payment from a Chinese importer, Sing Tao, in one year. WA Co. also wants to minimise its exchange rate risk for receiving CNY5.21 by taking the forward market hedging strategy. Calculate the Australian dollar (A$) proceeds from the forward market hedging strategy based on the information in Table 1. (Enter the whole number without sign and symbol). TABLE 1 For Chinese yuan (CNY) Spot rate A$0.426/CNY One-year forward rate A$0.6181/CNY One-year CNY deposit and borrowing 8.78% rate One-year call options Exercise price = A$0.61 Premium = A$0.03 One-year put options Exercise price A$0.53 = For Australian dollar (A$) Spot rate One-year forward rate Premium A$0.06 CNY3.4379/A$ CNY2.41/A$ One-year A$ deposit and borrowing rate 4.57% One-year call options Exercise price = CNY2.13 Premium CNYO.21 One-year put options Exercise price = CNY2.32 Premium = CNY0.13 An Australian exporter WA Co. wants to export goods for 5.21 million Chinese yuan (CNY) and receive payment from a Chinese importer, Sing Tao, in one year. WA Co. also wants to minimise its exchange rate risk for receiving CNY5.21 by taking the forward market hedging strategy. Calculate the Australian dollar (A$) proceeds from the forward market hedging strategy based on the information in Table 1. (Enter the whole number without sign and symbol). TABLE 1 For Chinese yuan (CNY) Spot rate A$0.426/CNY One-year forward rate A$0.6181/CNY One-year CNY deposit and borrowing 8.78% rate One-year call options Exercise price = A$0.61 Premium = A$0.03 One-year put options Exercise price A$0.53 = For Australian dollar (A$) Spot rate One-year forward rate Premium A$0.06 CNY3.4379/A$ CNY2.41/A$ One-year A$ deposit and borrowing rate 4.57% One-year call options Exercise price = CNY2.13 Premium CNYO.21 One-year put options Exercise price = CNY2.32 Premium = CNY0.13