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Albert Inc. has accounts receivable of 289,000 Canadian dollars (CAD) due in six months. The spot rate for a Canadian dollar is 2.2426 US dollars

Albert Inc. has accounts receivable of 289,000 Canadian dollars (CAD) due in six months. The spot rate for a Canadian dollar is 2.2426 US dollars and the forward rate for a Canadian dollar in six months is 1.9815 US dollars. The European call option on the CAD with the same expiration date as the receivable has a strike price of USD 2.6225 and a premium of USD 0.04. Similarly, a put option on the CAD with a strike price of 2.6597 has a premium of 0.05. Assume that on the due date of the account receivable, the spot rate is USD 2.8622 per CAD. The company prefers to hedge its transaction exposure using financial instruments that provide flexibility. calculate the net amount received in USD by the company.

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