How can the below example be handled via a call option approach?
Question How can the below example be handled via a call option approach? style=”background-color:rgb(230,230,230);color:rgb(17,17,17);”>The MNC would hedge a payable of $1,000,000 to be paid in Chinese Yuan (CNY). MNC can purchase the CNY forward at $1,000,000 to lock in a spot rate of $/6.712 CNY if they expect CNY to appreciate against dollar in 90 […]