Calculate the amount you will pay

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Question - A call option is available with an exercise price $1.55, a 90-day expiration date, and a premium of $.03 per unit. The put option in Euro is available with an exercise price of $1.60, a 90-day expiration date, and a premium of $.02 per unit. You plan to purchase options to cover your future payables of 500,000 euro in 90 days. You will exercise the option in 90 days (if at all). Ninety days (90 days) has expired and the spot rate for the Euro is $1.54. Calculate the amount you will pay.

Reference no: EM133130556

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