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Question 13 An Canadian company has purchased currency put options to hedge a 200,000 Australian dollar (AUD) receivable. The premium is CAD0.0154 and the exercise

Question 13

An Canadian company has purchased currency put options to hedge a 200,000 Australian dollar (AUD) receivable. The premium is CAD0.0154 and the exercise price of the option is CAD0.7750. Assume that the spot rate at the time of maturity is CAD0.8204. Ignoring the time value of money, what is the net amount received by the company if it acts rationally? a. CAD161,000 b. CAD167,160 c. CAD164,080 d. CAD155,000 e. CAD151,920

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