A US exporter is scheduled to receive SFr125,000 in 60 days. The premium for a franc put option with a strike price of \($0.50\) and a 90-day settlement date is \($0.03\) per franc.

The company anticipates that the spot rate in 90 days will be \($0.46.\) Should the company hedge its accounts receivable in the options market? If the spot rate were \($0.51\) in 90 days, how would it affect the company’s decision?