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A firm has a payable of 500,000,000.00. They hegde this exposure with a call option...

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Finance

A firm has a payable of 500,000,000.00. They hegde this exposure with a call option with a strike price of $0.0185/. The premium of the option is $0.0011. If at the time of payment the spot price ends up equal to $0.0189/. What is the firm's total cost?
Group of answer choices
$9,250,000
None of the alternatives
$10,000,000
$9,800,000
$8,700,000

Answer & Explanation Solved by verified expert
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