1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vekshin1
3 years ago
6

Cachita Haynes works as a currency speculator for Vatic Capital of Los Angeles. Her latest speculative position is to profit fro

m her expectation that the U.S. dollar will rise significantly against the Japanese yen. The current spot rate is ​¥120.00​/$. She must choose between the following 90​-day options on the Japanese​ yen:Option Strike Price PremiumPut on Yen 125/$ 0.00003/S$Call on Yen 125/$ 0.00046/S$Should Cachita buy a put on yen or call on yen?
Business
1 answer:
VARVARA [1.3K]3 years ago
5 0

Answer:

Cachita should buy put on yen

Explanation:

Given:

The current spot rate = ¥120.00​/$

in US $/¥ = \frac{\textup{1}}{\textup{120.00}}

or

in US $/¥ = 0.0083

Maturity time = 90 days

                                     Put on Yen                  Call on Yen

Strike Price                     125/$                           125/$

Strike Price in $/¥        0.008                            0.008

Premium                      0.00003/$                0.00046/$

Therefore,

Here the strike price for put on Yen and call on Yen are same

but the premium for Put on Yen is less than the premium for the call on Yen

Therefore, Cachita should buy a put on yen to get the profit from the rise of the dollar        

You might be interested in
The code that forty-nine states have adopted to interpret and enforce contract law is the _____.
grin007 [14]
<span>The code that forty-nine states have adopted to interpret and enforce contract law is the "Uniform Commercial Code".


</span>The Uniform Commercial Code was published in 1952 and it contains many uniform acts. The nine articles of the UCC is an arrangement of laws overseeing the offer of products, leases of merchandise, debatable instruments, bank stores, support exchanges, letters of credit, mass deals, distribution center receipts, bills of replenishing, investment securities and secured exchanges. As the national economy developed at the turn of the twentieth century, a need to direct business exchanges consistently became important. With the reception of the UCC, organizations and in addition people are secured.
3 0
3 years ago
Read 2 more answers
Marketing managers need the information provided by marketing research for many reasons. Which of the following is not a reason
mel-nik [20]

Answer: is Option D:<u> All of the above are reasons to need information provided by marketing research</u>.

Explanation:

Marketing managers needs information based on the marketing research for betterment of the firm and its productivity. Through marketing research managers assess their current scope of the firm among consumers by calculating many factors. These includes firm's scope and its recognition nationally as well as internationally, consumers affiliation with the product produced by the firm, and to gather the information regarding its competitors. so the right option is D.

6 0
3 years ago
An apple ipad sells for $699.00 on ebay. the markup is 30% on cost. what is the total cost of the ipad sold on ebay?
NNADVOKAT [17]
The total cost of the ipad sold on ebay is $908.70
6 0
3 years ago
Can someone help me with numbers 17 - 22 or check if I got it right ? This is accounting
Svetllana [295]
Hard dm me and I know what it is for sure
4 0
3 years ago
Jeremy works as a member of a sales team. He never gets involved in conflicts at work. He seems to have the ability to deal with
Mashcka [7]
I believe it would be integrity.
7 0
3 years ago
Other questions:
  • What is a lien and when can it be used/
    5·2 answers
  • Social enterprises are businesses that directly address which of the following?
    14·1 answer
  • . Dallas Wildcat Drilling Co. sells an oil-drilling rig for $3,000,000. The drilling rig was purchased in 2013 for $2,000,000. D
    11·1 answer
  • The project management plan
    14·1 answer
  • The theory of comparative advantage Multiple Choice claims that economic well-being is enhanced if each country's citizens produ
    11·1 answer
  • Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the dividend will increase by 5% per
    8·1 answer
  • Use the following information to answer the question. There are three firms in an economy: X, Y, and Z. Firm X buys $200 worth o
    6·1 answer
  • Michael works as a sales representative for an oilfield supply business in West Texas. He sells highly technical safety equipmen
    13·1 answer
  • Considering the needs of a global audience is essential to success in the hospitality and tourism industry?
    5·1 answer
  • Free Brainlist lol<br><br> Last time im doing it cause im BROKE now i have 1 point (⌐■_■)
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!