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19. Jaden wants to hedge an account receivable of 830,000 Philippine peso (PHP) with American options. The total option premium to hedge this transaction is

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Jaden wants to hedge an account receivable of 830,000 Philippine peso (PHP) with American options. The total option premium to hedge this transaction is 12,000 U.S. dollars. The spot exchange rate for a Philippine peso is USD 1.1807, and the one-month forward rate is USD 1.2867. Suppose, the strike price of a put option on PHP is USD 1.0258 and the strike price of a call option on PHP is USD 1.0573, what will be the breakeven exchange rate if Jaden acts rationally? a. 1.0403 b. 1.1662 c. 1.2722 d. 1.0113

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