Sirius Black buys a $1.4 strike put on 31,250 to hedge an AR of 31,250 due in

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Sirius Black buys a $1.4 strike put on 31,250 to hedge an AR of 31,250 due in 1 month, and also sells 62,500 in $1.4 strike calls to raise just enough money to buy the put option so there is no premium paid. Suppose that the exchange rate turns out to be $1.45 at expiration. What is the dollar value of the AR hedged with this strategy? Question 29 options: $42,187.50 $44,531.25 $40,625 $43,750

Posted Date: May 18, 2024 11:01 AM

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Sirius Black buys a $1.4 strike put on 31,250 to hedge an AR of 31,250 due in

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