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A U.S. importing company requires 350,000 EUR in three months. Spot rate: 1.14 EUR/USD Expected 3-month spot rate: 1.20 EUR/USD 3-month European Call Option (Strike):

A U.S. importing company requires 350,000 EUR in three months.

Spot rate: 1.14 EUR/USD

Expected 3-month spot rate: 1.20

EUR/USD 3-month European Call Option (Strike): 1.21 EUR/USD, Premium 5c

USD 3-month European Put Option (Strike): 1.21 EUR/USD, Premium 6c USD

The company will use an options hedge. What is the expected net total cost of the hedge and payable (combined) in USD?

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