jacob corporation (a us based multinational corporations) would likr to hedge an 88,000 euro recievable due three months later using the currency options. Both the call options and thr put options havr the premium of $.04 (per unit of euro) and the exercise price of $1.14 per euro.

A. what action should jacob corporation take to hedge its euro recievable using currency options?

-buy a currency call options on euros.

-buy a currency put option on euros.

-sell a currency put option on euros.

B. If the spot rate at the time of muturity is $1.18 per euro, what is the total amount of dollars recieved (after accounting for the premium paid) by jacob corporatiin when it used appropriate currency options identified in the first part of thr question to hedge its euro recievable?

-$98,560

-$96,800

-$100,320

-$95,040

-$91,520