In: Finance
The outcome of a options market hedge for C$200,000 accounts payable due in 6 months is when options strike price and the premium are $0.9850 and $0.01 respectively and the us and the C$ interest rates are 3.0% and 3.5% respectively: Explain.
a. $199,030 b. $199,035
c. $199,030 or less d. $199,035 or less
d. none of the above