Spot rate - $2/E 3 month Forward rate -$1.98/E 3 month U.K. (U.S.) interest rate- 4% ( 396 ) per year. 3 month put contract with a strike price of $1.99/E with a 4% premium 3 month call option with a strike price of $1.99/E with a 3.5% premium A) How would company ABC hedge a 200 million receivable? Which alternative would you pick? B) How would company ABC hedge a 400 million payable? Which alternative would you pick? Spot rate - $2/E 3 month Forward rate - $1.98/E 3 month U.K. (U.S.) interest rate - 46 (36 ) per year. 3 month put contract with a strike price of $1.99/E with a 4% premium 3 month call option with a strike price of $1.99/E with a 3.5% premium A) How Would company ABC hedge a 200 million receivable? Which alternative would you pick? B) How would company ABC hedge a 400 million payable? Which alternative would you pick