An Australian company purchased put options to hedge a EUR $100$ million account receivable. This EUR $100$ million will be received at the end of this year. The exercise price of the option is AUD $1\mathrm{.}60/$EUR with a premium of AUD $0\mathrm{.}02/$EUR and a maturity of a year. The spot rate became AUD $1\mathrm{.}55/$EUR at the end of this year. The net payoff $($including the EUR $100$ million account receivable$)$ at the end of the year $($ignoring the time value of money$)$ is

Question $14$Answer

a$.$

AUD $155$ million

b$.$

AUD $153$ million

c$.$

AUD $160$ million

d$.$

AUD $162$ million

e$.$

AUD $158$ million