Assuming the company wishes to minimize its cost

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Carolleo Corp. will need 455,000 euros in 60 days to cover a payables position. Currently, a 60-day call option with an exercise price of $.75 and a premium of $.01 is available. Also, a 60-day put option with an exercise price of $.73 and a premium of $.015 is available. The company plans to purchase options to hedge its payables position. Assuming that the spot rate in 60 days is $.72, what is the net amount paid, assuming the company wishes to minimize its cost??

Reference no: EM132038421

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