Question: please provide the correct answer as you choose the options that I send picture for each line . thank you TEK wishes to hedge a



please provide the correct answer as you choose the options that I send picture for each line . thank you
TEK wishes to hedge a EUR4,000,000 account receivable arising from a sale to Olivetti (Italy). Payment from Olivetti is due in three months. TEK's Italian unit does not have ready access to local currency borrowing, eliminating the money market hedge alternative. Citibank has offered TEK the following quotes: Spot rate USD1.2000/EUR 3 month forward rate USD 1.2180/EUR Three month euro interest rate 4.2% per year 3 month put option on euros 3.4% at strike price of USD 1.0800/EUR TEK's weighted average cost 9.8% of capital In the context of this information, match the following graph with the appropriate labels (note there are fewer blanks than available responses): In the context of this information, match the following graph with the appropriate labels (note there are fewer blanks than available responses): A Gain B J 1 $0 Hi 1 D F G 1 Loss E What is the label for line A? Choose... What is the label for line B? Choose... What is the label for line C? Choose.. What is the label for line D? Choose... What is the label for line E? Short Forward What is the label for line F? Choose... What is the label for line ? Choose... What is the label for line H? Choose... What is the label for line I? Choose... What is the label for line J? Choose
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