Question: I want to work out the calculation and answer for the Forward Position Outcome ($/) .The information is as follows: Exchange Rate: Spot Exchange Rate
I want to work out the calculation and answer for the Forward Position Outcome ($/) .The information is as follows:
Exchange Rate:
Spot Exchange Rate ($/) = 1.50
Forward Exchange Rate ($/) - 1 Year = 1.46
Call Options ($/): Strike: 1.30 Bid: 0.040 Ask: 0.041
Put Options ($/): Strike: 1.30 Bid: 0.003 Ask: 0.005
What calculations do I use to determine the:
1. Unhedged Position
2. Hedged Position; and
3. Gains/Losses from Hedge?
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