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A U.S. corporation has purchased currency call options to hedge a 70,000 pound ( ) payable. The Premium is $0.02 and the exercise price of

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A U.S. corporation has purchased currency call options to hedge a 70,000 pound ( ) payable. The Premium is $0.02 and the exercise price of the option is $0.50. If the spot rate at the time of maturity is $0.65, what is the total amount paid by the corporation if it acts rationally? Internet Exercises

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