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Porsche hedges by buying two-year European at-the-money put options on USD (providing to Porsche the right to sell USD, receiving Euros, at the strike exchange

Porsche hedges by buying two-year European at-the-money put options on USD (providing to Porsche the right to sell USD, receiving Euros, at the strike exchange rate) in sufficient quantity to have the right to sell an amount of USD equal to expected 2009 sales. Assume that the premium for the options is Euros 0.041 for the right to sell one USD at the current spot rate.

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