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Business, 13.11.2019 05:31 chloemandile9818

Xyz corporation, located in the united states, has an accounts payable obligation of ¥750 million payable in one year to a bank in tokyo. the current spot rate is ¥116/$1.00 and the one year forward rate is ¥109/$1.00. the annual interest rate is 3 percent in japan and 6 percent in the united states. xyz can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent per yen. the maximum future dollar cost of meeting this obligation using the call option is

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Xyz corporation, located in the united states, has an accounts payable obligation of ¥750 million pa...
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