The premium on a June 17 British pound call option with a strike price of $1.2560...

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Finance

The premium on a June 17 British pound call option with a strikeprice of $1.2560 when the spot rate is $1.2620 is quoted as $0.02.The time value of this option is.

The premium on a June 17 British pound call option with a strikeprice of $1.2750 when the spot rate is $1.2620 is quoted as $0.025.The intrinsic value of this option is.

Your firm has an accounts receivable worth C$200,000 due in sixmonths. The firm buys 2 June 16 Canadian dollar put options with astrike price of $0.9750 at a premium of $0.0075 to hedge againstthe exchange risk. If the spot rate in June settles above thestrike and current interest rate dollar 2%, the outcome of thehedge will be exactly $193,483. Yes or no? explain>

Manual work, not excel

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Calculation of Time Value of money Premium 002 Strike Price 12560 Spot rate 12620 Intrinsic value Strike price spot price 1256012620 0006 Time value of option    See Answer
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The premium on a June 17 British pound call option with a strikeprice of $1.2560 when the spot rate is $1.2620 is quoted as $0.02.The time value of this option is.The premium on a June 17 British pound call option with a strikeprice of $1.2750 when the spot rate is $1.2620 is quoted as $0.025.The intrinsic value of this option is.Your firm has an accounts receivable worth C$200,000 due in sixmonths. The firm buys 2 June 16 Canadian dollar put options with astrike price of $0.9750 at a premium of $0.0075 to hedge againstthe exchange risk. If the spot rate in June settles above thestrike and current interest rate dollar 2%, the outcome of thehedge will be exactly $193,483. Yes or no? explain>Manual work, not excel

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