AMIS624X3C - Put Option Case with Sales x1 x1 x2 Spot Rate...

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Put Option Case with Sales 12/1/20x1 12/31/20x1 3/1/20x2 Option Value12/1/20x1 12/31/20x1 3/1/20x2 Spot Rate $1.40 $1.35 $1.33 Time Value $1,700 $1,000 $0 Strike Price $1.37 $1.37 $1.37 Intrinsic Valu 0 2,000 4,000 Fair Value $1,700 $3,000 $4,000 Total $1,700 $3,000 $4,000 Both Transactions Involve 100,000Euros 12/1/20x1 Accounts Rec 140,000 12/1/20x1 FX-Contract V 1,700 Sales 140,000 Cash 1,700 12/31/20x1 FX Loss 5,000 12/31/20x1 FX-Contract V 1,300 Accounts Receivable 5,000 FX Gain 1,300 3/1/20x2 FX Loss 2,000 3/1/20x2 FX-Contract V 1,000 Accounts Receivable 2,000 FX Gain 1,000 Cash 133,000 Cash 4,000 Accounts Receivable 133,000 FX-Contract Value 4,000
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Forward--Case to Buy Foreign Currency 10/17/20x1 12/31/20x1 1/15/20x2 F'wd Value 10/17/20x1 12/31/20x1 1/15/20x2 Spot Rate $2.01 $1.98 $1.94 Get $205,000 $200,000 $194,000 Forward Rate $2.05 $2.00 $1.94 Give 205,000 205,000 205,000 Effect/Discounting Net $0 ($5,000) ($11,000) Discounting n/a 0n/a Both Transactions Involve 100,000Pounds Value of FX
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This note was uploaded on 08/06/2011 for the course AMIS 624 taught by Professor Wallin during the Summer '11 term at Ohio State.

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AMIS624X3C - Put Option Case with Sales x1 x1 x2 Spot Rate...

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