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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
|
On December 1, Y1, Alexander Inc., a US based importer of olive oil placed an order for 500 cases of olive oil at a price of 100 Euros per case. The pertinent exchange rates are given below. DATE |
SPOT Rate |
FORWAR RATE (to January 31, Y2) |
CALL OPTION PREMIUM FOR 1/31/Y2 (Strike price of $1) |
|
12/1/Y1 |
$1.00 |
$1.08 |
$0.04 |
|
12/31/Y2 |
$1.12 |
$1.20 |
$0.12 |
|
1/31/Y2 |
$1.15 |
$1.15 |
$0.15 |
Â
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