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Carson Printing is a U.S. multinational that just sold 800,000 of goods on account, due in 30 days to a British customer. The spot exchange
Carson Printing is a U.S. multinational that just sold 800,000 of goods on account, due in 30 days to a British customer. The spot exchange rate is $1.775/. Carson wants to hedge the account receivable with an OTC put option with a strike price of $1.800/. The option premium is 0.50 percent, and the 30 -day periodic rate in the U.S. is 0.40 percent. If the spot exchange rate in 30 days is $1.825/, what is the net amount received? a. $1085346 b. $1452871.6 c. remain unhedged. d. $1447128.4
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