1. Dell Computer has a £1 million receivable that it expects to collect in one year. Suppose the interest rate on pounds is 15%. How could Dell mitigate the risk caused by this receivable by borrowing or lending money.
2. If the current spot rate for Australian dollar is U.S.$0.9700, what is the intrinsic value of an A$50,000 call option with an exercise price of U.S.$0.9501?