Question

Time left 00:06:14
An American form has just bought merchandise
from a British form for £50,000 on terms of net 90
days. The US, company has purchased a 3
month call option of 50,000 pounds at a strike of
$1.7 per pound and premium cost of 50.02 pet
pound. On the day the option matures, the spot
Exchange rate is 518 per pound. Should the US,
company exercise the option at that time or buy
British pounds in the spot marvek? Select ones
s exercise the option
b.buys British pound spot
c does not make any difference
d. cannot tell​

Answer 1

Explanation:

An American form has just bought merchandise

from a British form for £50,000 on terms of net 90

days. The US, company has purchased a 3

month call option of 50,000 pounds at a strike of

$1.7 per pound and premium cost of 50.02 pet

pound. On the day the option matures, the spot

Exchange rate is 518 per pound. Should the US,

company exercise the option at that time or buy

British pounds in the spot marvek? Select ones

s exercise the option

b.buys British pound spot

c does not make any difference

d. cannot tell

Answer 2

Answer:

Time left 00:06:14

An American form has just bought merchandise

from a British form for £50,000 on terms of net 90

days. The US, company has purchased a 3

month call option of 50,000 pounds at a strike of

$1.7 per pound and premium cost of 50.02 pet

pound. On the day the option matures, the spot

Exchange rate is 518 per pound. Should the US,

company exercise the option at that time or buy

British pounds in the spot marvek? Select ones

s exercise the option

b.buys British pound spot

c does not make any difference

d. cannot tell