Cane corporation will need 201000 canadian dollars c in 90


Cane Corporation will need 201,000 Canadian dollars (C$) in 90 days to cover a payable position. Currently, a 90-day call option with an exercise price of $.75 and a premium of $.01 is available. Also, a 90-day put option with an exercise price of $.73 and a premium of $.01 is available. Cane plans to purchase options to hedge its payable position. Assuming that the spot rate in 90 days is $0.75, what is the net amount paid, assuming Cane wishes to minimize its cost? 152,760

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