Compute the breakeven exchange rate of euros if the company uses Put Option No. 1 for hedging.

Seaview Company is an U.S. company that exports goods to UK. It plans to use put options to hedge receivable of 100,000 in 90 days. The following two put options, with 100,000 contract amount, are available that have an expiration date 90 days from now. | Put Options Option No. 1 Option No. 2 Exercise Price US$1.18 US$1.12 Option Premium US$0.06 US$0.04 Required: (a) Compute the U.S. dollars amount to be received for the receivables (after considering the option premium) for each option available under each possible scenario. Scenario Put Option No. 1 Put Option No. 2 Spot Rate of Euro 90 Days from Now US$1.10 US$1.15 US$1.20 : (6 marks) (b) Compute the breakeven exchange rate of euros if the company uses Put Option No. 1 for (2 marks) hedging