AFP Certified Treasury Professional CTP Question # 538 Topic 31 Discussion

AFP Certified Treasury Professional CTP Question # 538 Topic 31 Discussion

CTP Exam Topic 31 Question 538 Discussion:
Question #: 538
Topic #: 31

A U.S. company that is expecting to receive a payment of C$1,000,000 purchased a put option of C$1,000,000 at a strike price of 1.75 C$/US$. Two days before the receipt of the payment, the spot rate is 1.85 C$/US$. To maximize its receipt of dollars, the company should do which of the following?


A.

Let the put option expire.


B.

Exercise its put option.


C.

Purchase a call option at 1.85.


D.

Purchase a spot contract at 1.85.


Get Premium CTP Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.