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Suppose a Canadian company has to pay 5 m sometime during the next 3 months. To hedge this the importer buys options on the ,

Suppose a Canadian company has to pay 5 m sometime during the next 3 months. To hedge this the importer buys options on the , and the option premium is $0.0220/, for options with K = $1.50/ What is the cost incurred today? options $ 0.11 m $ 0.44 m $ 0.33 m $ 0.22 m

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