Problem 7.06 – Kiko​ Peleh’s Puts

Multinational Business Finance

Eiteman, Stonehill, and Moffett

15th Edition and 16th Edition

Determine Peleh’s profit or loss given various spot rates assuming Peleh writes a put option on the Japanese yen.

Problem 7.08 – Vatic Capital Cachita Haynes

Multinational Business Finance

Eiteman, Stonehill, and Moffett

15th Edition and 16th Edition

Given a table of info on put and call options on the yen, figure out what Cachita should do. Then calculate the breakeven, gross profit, and net profits.