Question: RTX Inc. ( a U . S . based firm ) negotiates a conditional currency call options with a bank to hedge its accounts payable
RTX Inc. a US based firm negotiates a conditional currency call options with a bank to hedge its accounts payable of million South Korean won due on April RTX will only exercise its option on the due date. The terms of the conditional currency call options are as follows: K exercise price $ per South Korean won, Trigger $ per South Korean won, premium $ per South Korean won, expiration date April If the spot rate on the due date, ie April is $ per South Korean won, what is the amount of US dollar RTX expects to pay for its million South Korean won? Question options: $ $ $ $
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