Assume ADM uses options with a strike price of USD 0.9500 per CHF to hedge...
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Assume ADM uses options with a strike price of USD 0.9500 per CHF to hedge (and the optimal option (put/call), maturity, and number of contracts you ve selected) What is the payoff on the option contracts for the indicated spot rate scenarios on September 21, 20207 (-** implies a cash outflow from ADM: *** implies a cash inflow to ADM.)" Spot USD per MXN Options Payoff USD 0.8500 -500,000 0.9500 1.0500 500,000 0 Spot USD per MXN 0.8500 0.9500 1.0500 Options Payoff USD 0 0 1,000,000 Spot USD per MXN 0.8500 0.9500 1.0500 Spot USD per MXN 0.8500 0.9500 1.0500 Options Payoff USD 1,000,000 0 0 Options Payoff USD 0 0 5,000,000 Assume ADM uses options with a strike price of USD 0.9500 per CHF to hedge (and the optimal option (put/call), maturity, and number of contracts you ve selected) What is the payoff on the option contracts for the indicated spot rate scenarios on September 21, 20207 (-** implies a cash outflow from ADM: *** implies a cash inflow to ADM.)" Spot USD per MXN Options Payoff USD 0.8500 -500,000 0.9500 1.0500 500,000 0 Spot USD per MXN 0.8500 0.9500 1.0500 Options Payoff USD 0 0 1,000,000 Spot USD per MXN 0.8500 0.9500 1.0500 Spot USD per MXN 0.8500 0.9500 1.0500 Options Payoff USD 1,000,000 0 0 Options Payoff USD 0 0 5,000,000

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