Question: Please help with this question, I am stuck. Let me know if there is any other information needed! Thank you so much for your time
Please help with this question, I am stuck. Let me know if there is any other information needed! Thank you so much for your time in advance
Country Cost Spot Rate 6-Month Forward Rate Switzerland F66,151,533 $1.0488/1F $1.0685/1F China Y27,645,290 x6.3346/1$ x6.4020/1$ Russia P17,012,486 P56.6589/1$ P57.7081/1$ Mexico ($) MP19,139,047 MP18.5887/1$ MP19.1780/1$ France (29,771,851 $1.2307/1E $1.2485/1E Germany (40,404,655 $1.2307/1E $1.2485/1E Finland (10,632,804 $1.2307/1E $1.2485/1E Italy (31,898,412 $1.2307/1E $1.2485/1E 1) If the cost of capital is 11.5675%, what is the cost to Tracero of the option strategy?| 2) What are the fundamental differences for Tracero between hedging with forward and futures contracts and hedging with option contracts