Question: OSU Finance Homework Help Just need a refresh answer with steps I'm somehow missing the correct answer but feel I am following the steps right.

OSU Finance Homework Help

Just need a refresh answer with steps I'm somehow missing the correct answer but feel I am following the steps right. Thanks

A Swiss importer is concerned about the appreciation of EUR against Swiss Franc due to EUR payables of EUR100,000,000 in three months. To hedge the position, importer decides to use an OTC call option on EUR with a strike price of EUR/SWF 1.1500 at 2% premium At the time the option is purchased, the spot rate was USD1.1475. On the day the option expires EUR/SWF spot rate is 1.1600. Calculate the effective amount of USD the company will pay for its 100m EUR payable? Assume that importer's cost of capital is 10%. [Calculate the time value of the option premium; round your final figure into integers]

Question 12 options:

	118,659,232
	111,500,000
	115,635,078
	117,352,375

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