Question: purchase 1 , 9 0 0 , 0 0 0 francs in three months. Maas selects a strike price of $ 0 . 6 7

purchase 1,900,000 francs in three months. Maas selects a strike price of $0.67 per franc when the spot rate is $0.67 and pays a premium of $0.004 per franc. The spot rate increases to $0.675 at December 31,2023, causing the fair value of the option to increase to $16,000.

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