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Tango corporation based in Dallas has purchased currency put options to hedge a 200,000 Canadian dollar (C$) receivable. The premium is $.02 and the exercise
Tango corporation based in Dallas has purchased currency put options to hedge a 200,000 Canadian dollar (C$) receivable. The premium is $.02 and the exercise price of the option is $.77. If the spot rate at the time of maturity is $.82, what is the net amount received by the corporation if it acts rationally?
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