Assume you are a US exporter with an account receivable denominated in Singapore dollars to bepaid to you in one year, in the amount of SGD 780,691. The current spot rate is 0.71 USD per SGD.You have decided to hedge using a put option, with an exercise price of 0.71 and a premium of0.02.What would be the hedged US dollar amount of the receivable if in one year the spot rate is 0.71USD per SGD? Enter your answer with no decimals.

Put option gives opportunity to sell currency at specified rate but there is no obligation to do…

paid to you in one year, in the amount of SGD 780,691. The current spot rate is 0.71 USD per You have decided to hedge using a put option, with an exercise price of 0.71 and a premium of 0.02. What would be the hedged US dollar amount of the receivable if in one year the spot rate is 0. USD per SGD? Enter your answer with no decimals.

paid to you in one year, in the amount of SGD 780,691. The current spot rate is 0.71 USD per You have decided to hedge using a put option, with an exercise price of 0.71 and a premium of 0.02. What would be the hedged US dollar amount of the receivable if in one year the spot rate is 0. USD per SGD? Enter your answer with no decimals.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 7MC

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