12) An American firm sells farm equipment to a British company for ?250,000 to be paid in 180 days. The current exchange rate is $1.98/?. The exporter hedges its exchange rate risk by buying a put option on ?250,000 with the strike exchange rate of $1.92/?. The put expiring in 180 days cost the firm $5,000. What is the dollar amount the American firm will net on this transaction if the exchange rate is $1.96/? in 180 days?

13) One year ago, a U.S. investor converted dollars to yen and purchased 100 shares of Nardasausau stock in a Japanese company at a price of 3,150 yen per share. The total purchasing cost was 315,000 yen. At the time of purchase, in the currency market 1 yen equaled $0.00952. Today, Nardasausau stock is selling at a price of 3,465 yen per share, and in the currency market $1 equals 130 yen. The stock does not pay a dividend. If the investor were to sell the stock today and convert the proceeds back to dollars, what would be his realized return on his initial dollar investment from holding Nardasausau stock?