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QUESTION 10 An Australian corporation has purchased currency call options to hedge a 60,000 euro (EUR) payable. The premium is $0.05 and the exercise price

QUESTION 10 An Australian corporation has purchased currency call options to hedge a 60,000 euro (EUR) payable. The premium is $0.05 and the exercise price of the option is $1.40. If the spot rate at the time of maturity is $1.45, what is the total amount paid by the corporation if it acts rationally?

a.$90,000

b.$67,000

c.$84,000

d.$87,000

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