In: Finance
Please draw well-labelled profit diagrams of the exporter position, the option, and the hedged position. In your analysis, ignore the potential mismatches between the exchange-traded options and the original cash flow (i.e., assume you can construct a perfect hedge).
Please up me understand a well-labeled diagram and illustrate the best approach how to draw
Option Hedge |
Put Option |
Strike Price from January 14th 1986 |
$1.45 USD/ £ |
Premium |
0.0044 |
Expiration Date |
3 Months: 14th April 1986. |