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MyRobot is a US company that exports robotic toys to Mexico. The company expects to receive 5,000,000 Mexican Pesos in one year from its exports.

MyRobot is a US company that exports robotic toys to Mexico. The company expects to receive 5,000,000 Mexican Pesos in one year from its exports. The girl expects the following exchange rate scenarios and probabilities. Scenario A: spot rate in one year= 0.0538 and probability = 0.5 Scenario B: spot rate in one year = 0.0545 and probability = 0.4 Scenario C: spot rate in one year = 0.0552 and probability = 0.1. The spot rate is $0.0545 per peso. What is the expected value of the receivables in one year with the put option hedge?

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