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A currency call option with a strike at 1.4472 CAD/EURO and a premium of 0.0308 The company chooses to hedge the Euro 15M payable in

A currency call option with a strike at 1.4472 CAD/EURO and a premium of 0.0308

The company chooses to hedge the Euro 15M payable in 4 months with the call. Plot a diagram representing the cost of the payable in CAD as a function of the exchange rate in 4 months expressed as above in CAD/EURO (that is the number of AUD that you can trade on the spot market, in four months, against 1 Euro.

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