John Deere Co. (Deere) is a U.S.-based company whose sales are roughly two-thirds in dollars (Asia and the Americas) and one-third in euros (Europe). In September, Deere delivers a large shipment of heavy machineries to a major construction company in Vienna, Austria. The accounts receivable (A/R), 17 million, is due in 90 days, standard terns for the toy industry in Europe. Deere's treasury team has collected the following currency and market quotes. The compatiy's foreign exchange udvisors believe the euro will be at about S1.24/e in 90 days. Current spot rate (S/E) $1.22 Credit Suisse 90-day forward rate (SWE) $1.23 Deere's WACC (S) 8.00% per annun 90-day dollar interest rate 3.60% per annum 90-day euro interest rate 3.20% per annum December euro call option strike (S/E) $1.25 December euro put option strike (5) $1.25 Option premium is 1.5% of the size of the bodge (5 points) Assume Deere chooses to hedge its A/R at the option market. If the spot exchange rate in December is $1.29/, Decre would the option and receive a net amount of from the A/R in December.? (Note: use WACC to calculate option premium cost in December) not exercise; $21.930,000 exercise; $21,612,678 exercisc: S21.618.900 not exercise: $21,612,678 John Deere Co. (Deere) is a U.S.-based company whose sales are roughly two-thirds in dollars (Asia and the Americas) and one-third in euros (Europe). In September, Deere delivers a large shipment of heavy machineries to a major construction company in Vienna, Austria. The accounts receivable (A/R), 17 million, is due in 90 days, standard terns for the toy industry in Europe. Deere's treasury team has collected the following currency and market quotes. The compatiy's foreign exchange udvisors believe the euro will be at about S1.24/e in 90 days. Current spot rate (S/E) $1.22 Credit Suisse 90-day forward rate (SWE) $1.23 Deere's WACC (S) 8.00% per annun 90-day dollar interest rate 3.60% per annum 90-day euro interest rate 3.20% per annum December euro call option strike (S/E) $1.25 December euro put option strike (5) $1.25 Option premium is 1.5% of the size of the bodge (5 points) Assume Deere chooses to hedge its A/R at the option market. If the spot exchange rate in December is $1.29/, Decre would the option and receive a net amount of from the A/R in December.? (Note: use WACC to calculate option premium cost in December) not exercise; $21.930,000 exercise; $21,612,678 exercisc: S21.618.900 not exercise: $21,612,678