A japanese corporation has purchased currency call options, Ask an Expert

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A Japanese corporation has purchased currency call options for a premium of 4 yen per unit and the exercise price of the option is 101.34 yen per dollar.

If the spot rate at the time of maturity is 105.34 yen per dollar, what is the net amount paid (in yen) by the corporation to purchase $100,000?

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Financial Management, Finance

Category:- Financial Management
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