Question: Listen Show all working, zero mark if calculations are not shown A Canadian company is looking to reduce foreign exchange rate exposures. Available in the

 Listen Show all working, zero mark if calculations are not shown

Listen Show all working, zero mark if calculations are not shown A Canadian company is looking to reduce foreign exchange rate exposures. Available in the market is a call option for euro with an exercise price of $1.55 with a premium of $.03 and a 180-day expiration date. A euro put option is also available, with an exercise price of $1.58 with a premium of $.02 and a 180-day expiration date. The current spot rate is $$1.57, the spot rate is expected to be $1.59 in 180 days, and the forward rate is $ 1.59. A. Calculate how much money the company will receive for its 400,000 euros using a forward contract to hedge its receivables 5 marks- B. Calculate how much the company will receive for it 400,000 euros using an option contract? 4 marks Which is beneficial for the company? I mark

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