Q Search this course Suppose that Mullen Co, a U.S, based MNC, knows that it will need 300,000 pounds in one year in order to purchase supplies. It is considering forward call option to hedge these payables. Currency call options on the pound with expiration dates in one year currently have an exercise price $1.21 and a premium of $0.03. Mullen Co. wishes to use its own forecast of what the spot rate might be for the pound one year from now. The company believes there are the possible outcomes for the spot rate for the pound in one year. These three scenarios are shown in the following table; Scenario Pound Spot Rate in 1 Year Probability 20.00% Option Premium Total Price Per Unit, with Premium $1.19 Total Price Paid for 300,000 Pounds 5357,000 Exercise Options? 1 $1.16 30.03 no 2 70.00% $1.22 30.03 51.24 5372,000 yer 3 10.00% $1.24 30.03 $1.24 $372.000 ves 4 Given the information in the table, the expected value of dollar cash outflows when hedging payables with currency call options is for all 300,000 pounds