Value against an appreciation of the us exporter currency

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Value of import USD 10,000,000, Current Spot rate GHS 5.88/USD, One year forward GHS 6.60/USD

Delivery to be done a year from today, Option premium 0.325%,Size per contract USD 500,000,Strike prices GHS 6.00, Interest Rate in Ghana is 31.20% per annum, Interest rate in UK is 6.20% per annum.

Explain how Ghanaian importer can protect its value against an appreciation of the US exporter currency. Show calculations to support your explanation

Reference no: EM13828922

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