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Draw a graph with the three alternatives seen so far: unhedged profits, forward hedge, and...

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Question

Finance

  1. Draw a graph with the three alternatives seen so far: unhedged profits, forward hedge, and option hedge.

FX rate

Unhedged Profits

Forward Hedge

Put option hedge

Forward

Put option

0,75

-35000

-20000

50 000,00

40 000,00

0,8

-30000

-15000

45 000,00

35 000,00

0,85

-25000

-10000

40 000,00

30 000,00

0,9

-20000

-5000

35 000,00

25 000,00

0,95

-15000

0

30 000,00

20 000,00

1

-10000

5000

25 000,00

15 000,00

1,05

-5000

10000

20 000,00

10 000,00

1,1

0

15000

15 000,00

5 000,00

1,15

5000

20000

10 000,00

-0,00

1,2

10000

25000

5 000,00

-5 000,00

1,25

15000

30000

0,00

-10 000,00

1,3

20000

35000

-5 000,00

-10 000,00

1,35

25000

40000

-10 000,00

-10 000,00

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