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Check Answer A firm wants to use an option to hedge12,000,000 in receivables from New Zealand firms. The premium is $0.05. The exercise price is

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A firm wants to use an option to hedge12,000,000 in receivables from New Zealand firms. The premium is $0.05. The exercise price is $0.50. If the option is exercised, what is the total amount of dollars received (after accounting for the premium paid)?

Answer = 5,400,000

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