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17. A firm wants to use an option to hedge 12.5 million New Zealand dollars in receivables from New Zealand firms. The option premium is

17. A firm wants to use an option to hedge 12.5 million New Zealand dollars in receivables from New Zealand firms. The option premium is US$0.03/NZ$. The exercise price is US$0.55/NZ$. If the option is exercised, what is the total amount of US dollars received (after accounting for the premium paid) by the firm? a. $6,875,000 b. $7,250,000 c. $7,000,000 d. $6,500,000

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