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In the previous two stages you calculated that the expected dollar cash inflows from hedging the receivables with currency put options would be $238,000, while
In the previous two stages you calculated that the expected dollar cash inflows from hedging the receivables with currency put options would be $238,000, while the expected dollar cash inflow from not hedging the receivable would be $242,000. Based on this information, the company hedge in order to maximize expected dollar cash inflows from the receivables of 200,000 pounds.
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