OZK Co is using put option hedge for it Japanese yen receivable. If at the due...
OZK Co is using put option hedge for it Japanese yen receivable.
If at the due date that the spot rate for Japanese yen is less than
the strike
price, then OzK should not exercise the option and get yen on the
cheaper spot market instead
True
False
Homework Answers
False
OZK Co. bought put options on Japanese Yen, i.e. if price of yen falls it can sell its yen receivable at the strike price and will sell at spot if the price of yen increases above strike price, hence yen will be sold at strike price and put will be exercised if price of yen on expiry is less than the strike price.
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OZK Co is using put option hedge for it Japanese yen receivable.
If at the due...
Kiko Peleh's Puts. Kiko Peleh writes a put option on Japanese yen with a strike price...
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