1- HAVE A HEDGING STRATEGY / REMAIN UNHEDGED

2-APPRECIATION / DEPRECIATION

3- BUY / SELL

4- FIXED/MINIMUM/MAKSIMUM

5- 970,500,000 / 1,143,000,000 / 1,150,000,000 /

Assume you are an exporter in Turkey. You have sold drones worth of $50,000,000. Your receivable in US dollars is due in three months. Three-month maturity TRY interest rate is 17% (annual) and same maturity USD interest rate is 5% (annual). For simplicity assume that the borrowing and lending interest rates are the same. Spot exchange rate is 19.41TL/US\$ and three-month forward exchange rate is 22.86TL/US$ in the foreign exchange market. The company is cash rich and has no outstanding loans. There are also currency options available in the financial market. Exercise price of a call option with a maturity of 3 months is 23.00TL per US $. The call premium is 0.25 TL per US\$. Exercise price of a put option with a maturity of 3 months is 23.00TL per US $. The put premium is 0.50 TL per US\$. If you the outcome is uncertain. In this case, the greater the of the t, the higher will be your receivable in t, which is better for your exposure. In order to hedge this exposure, you need to $50,000,000 forward 3 months. With this hedging strategy, your receivable will be