6 Hopkins Ltd transported goods to Switzerland and will receive 2 000 000 Swiss francs in three months.

It believes the three-month forward rate will be an accurate forecast of the future spot rate. The threemonth forward rate of the Swiss franc is £0.35. A put option is available with an exercise price of £0.36 and a premium of £0.02. Would Hopkins prefer a put option hedge to no hedge? Explain.