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Perfect Purchase is a U.S. electronics retailer importing consumer electronics from Japan. The company will need 18 million yen () in one year to pay
Perfect Purchase is a U.S. electronics retailer importing consumer electronics from Japan. The company will need 18 million yen () in one year to pay its suppliers. The firm expects the following exchange rate scenarios and probabilities: A call option on yen expiring in one year costs $0.00033 per yen and has an strike price of $0.0082 per yen. Part 1 Attempt 1/2 for 5 pts. What is the total cost of hedging your payables with a call option (in \$)
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