1. A US exporter is due to receive 2m in 6 months time from a German customer.

The exporters bank has offered the following 6 months options on the 2m:

Put options are quoted as US$(cents) per Euro (1)

Exercise price premium

115.00 1.32

116.00 1.58

117.00 2.20

118.00 3.33

If the spot rate in 6 months is 116.50 cents, what is the net receipt to the US exporter?

	A.	US$2,286,000
	B.	US$2,340,000
	C.	US$2,330,000
	D.	US$2,296,000