What is the actual dollar amount jalapeno receives

Assignment Help Financial Management

Reference no: EM131934676

Multinational Finance

Jalepeno Corp must sell Peso 10,000,000 on Dec 22, 2017. On september 25, 2017 Jalepeno corp baught a put option on on peso 10,000,000 with an exercise prices of peso 18.0/$ and the expiration date of January 20, 2018. The option permium is $0.001 per Mexican peso. There is brokerage commision of $12 for each contract of Peso 250,000.

The spot rate on the date when jalepeno must sell 10,000,000 turns out to be peso 20.0/$. On this date, the put option is selling for $0.005 per Mexican peso.

What is the actual dollar amount jalapeno receives from sale of peso 10,000,000?

Reference no: EM131934676

Questions Cloud

Calculate the npv and irr for project on after-tax basis : An investor is considering an investment that has a Market Value of $2.5millions. Calculate the NPV and IRR for the project on after-tax basis.

Discuss the five steps in the sampling design process : List and briefly discuss the six steps in the marketing research process. discuss the five steps in the sampling design process.

The call provision of preferred stock : Which of the following is included in the call provision of a preferred stock??

Investment is to improve the quality of applicants : The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Chester next year?

What is the actual dollar amount jalapeno receives : What is the actual dollar amount jalapeno receives from sale of peso 10,000,000?

Calculate the ratios : Solve the problem below, calculate the ratios, interpret the results against the industry average, and fill in the table on the worksheet.

Why the student would be the best candidate for the position : Provide at least three links from the student's personal skill set to the expectations. Express why the student would be the best candidate for the position.

Write a paragraph summary of browns article : Write a paragraph summary of Brown's article. What would be the benefits? More importantly, what would be the drawbacks?

How the stressors negatively affected your job : How these stressors negatively affected your job or educational performance. At least two suggestions to remove or minimize the stressors indicated in your.

User Account

All Pages