What is the total future value of your option position

Reference no: EM133430162

Question: You have bought 6-month put options on the Mexican Peso with a strike price of 0.0490 $/peso at a price of 0.014 cents per peso for 30,000,000 pesos (careful of the decimal points!). Your cost of capital is an annual 9% rate. If the value of the peso declines to 0.0471 in 6 months, what is the total future value (including the cost) of your option position?

Reference no: EM133430162

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