Tesla exports cars to many countries, including China. The company expects to receive 16 million yuan...

  

 

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Tesla exports cars to many countries, including China. The company expects to receive 16 million yuan () in one year from its exports. The firm expects the following exchange rate scenarios and probabilities: Scenario A B C Spot rate in one year $0.131 $0.135 $0.139 Submit Probability 0.1 0.5 0.4 A put option on yuan expiring in one year costs $0.0024 per yuan and has an exercise price of $0.135 per yuan. Part 1 Attempt 1/10 for 10 pts. What is the expected value of the receivables in one year with the put option hedge (in $)? p+ decimals Tesla exports cars to many countries, including China. The company expects to receive 16 million yuan () in one year from its exports. The firm expects the following exchange rate scenarios and probabilities: Scenario A B C Spot rate in one year $0.131 $0.135 $0.139 Submit Probability 0.1 0.5 0.4 A put option on yuan expiring in one year costs $0.0024 per yuan and has an exercise price of $0.135 per yuan. Part 1 Attempt 1/10 for 10 pts. What is the expected value of the receivables in one year with the put option hedge (in $)? p+ decimals

Answer rating: 100% (QA)

To calculate the expected value of the receivables in one year with the put option hedge we need to ... View the full answer