32. A call option exists on British pounds with an exercise price of $1.60, a 90-day expiration date, and a premium of $.03 per unit. A put option exists on British pounds with an exercise price of $1.60, a 90-day expiration date, and a premium of $.02 per unit. You plan to purchase options to cover your future receivables of 700,000 pounds in 90 days. You will exercise the option in 90 days (if at al. You expect the spot rate of the pound to be $1.57 in 90 days. Determine the amount of dollars to be received, after deducting payment for the option premium. a. $1,169,000 b. $1,099,000 c. $1,106,000 d. $1,143,100 e. $1,134,000 33. Quasik Corporation will be receiving 300,000 Canadian dollars (CS) in 90 days. Currently, a 90- day call option with an exercise price of $.75 and a premium of $.01 is available. Also, a 90-day put option with an exercise price of S.73 and a premium of $.01 is available. Quasik plans to purchase options to hedge its receivable position. Assuming that the spot rate in 90 days is $.71, what is the net amount received from the currency option hedge? a. $219,000 b. $222,000 C. $216,000 d. $213,000 34. To hedge ain a foreign currency, a firm may a currency futures contract for that currency a. receivable; purchase b. payable; sell c. payable; purchase d. none of the above 35. Linden Co. has 1,000,000 euros as payables due in 90 days, and is certain that euro is going to depreciate substantially over time. Assuming the firm is correct, the ideal strategy is to: a. sell euros forward b. purchase euro currency put options. c. purchase euro currency call options. d. purchase euros forward. e. remain unhedged