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A Moving to another question will save this response. Question 23 of 25 >> Question 23 4 points Save Answer Your small US multinational business forecasts a 60.000 Euro revenue in 6 months. You hedge 100% of the revenue using put options with the strike price set at the EUR forward rate of 1.20. (The premium cost of the call options is assumed to be zero for this question). If the actual EUR foreign exchange rate in 6 months is 1.35, then what would be the US dollar gain or loss on your hedge (step 27 50 gain or loss 59.000 gain (59.000) loss (57.500) loss Moving to another question will save this response Question 23 of 25 Question 24 4 points Save Answer Your small multinational US business has a 50.000 Euro capital expense to purchase some tools made in Germany in 6 months. The 6 month EUR forward rate is 1.15. You are thinking of hedging 100% of the exposure using a forward contract. If the actual exchange rate in 6 months is 1.00, then what would be the US dollar gain or loss on your hedged exposure (step 317 (7.500) loss 50 gain or loss $4.500 gain (54,500) loss ho Moving to another question will save this response. >> Question 25 4 points Save Answer Your small US multinational business forecasts a 60,000 Euro revenue in 6 months. You hedge 100% of the revenue using put options with the strike price set at the EUR forward rate of 1.20. (The premium cost of the call options is assumed to be zero for this question). If the actual EUR foreign exchange rate in 6 months is 1.35, then what would be the US dollar gain or loss on your hedged exposure (step 3)? (59.000) loss 57,500 gain 50 gain or loss 59,000 gain Click Submit to complete this assessment. Question 25 of 25 Save and Submit

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