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15. A Canadian importer needs 1 million U.S. dollars in September, and decides to buy a call option on the USD for September delivery. Suppose

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15. A Canadian importer needs 1 million U.S. dollars in September, and decides to buy a call option on the USD for September delivery. Suppose a call option on the USD with a September expiration and a strike price of 1.25 USD/CAD trades for 0.0215 CAD per call on 1 USD. If, by the September expiration date, the USD has appreciated to 1.20 USD/CAD, how much did the firm gain (in CAD) from hedging with the option, compared to remaining unhedged? (1 mark)

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