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QWER Corporation will be receiving 400,000 Canadian dollars (C$0 in 90 days. Currently, a 90-day call option with an exercise price of $0.79 and a
QWER Corporation will be receiving 400,000 Canadian dollars (C$0 in 90 days. Currently, a 90-day call option with an exercise price of $0.79 and a premium of $0.02 is available. Also, a 90-day put option with an exercise price of $0.77 and a premium of $0.02 is available. QWER plans to purchase options to hedge its receivable position. Assuming that thew spot rate in 90 days is $0.82, what is the net amount received from the currency option hedge?
A. 300,000
B. 328,000
C. 351,000
D. 320,000
E. 308,000
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