Assume an American firm takes a long position on British Pound call options. The premium is...
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Assume an American firm takes a long position on British Pound call options. The premium is $0.05, and the strike price is $1.45. When the firm executed the option, they were able to save $150,000 total. If the total contracts were enough to buy 560,000 pounds, what was the asking price of the pound in US dollars? Assume an American firm takes a long position on British Pound call options. The premium is $0.05, and the strike price is $1.45. When the firm executed the option, they were able to save $150,000 total. If the total contracts were enough to buy 560,000 pounds, what was the asking price of the pound in US dollars?
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International Business and the New Realities
ISBN: 978-0136090984
2nd Edition
Authors: S. Tamer Cavusgil, Gary Knight, John R. Riesenberger
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