TEK wishes to hedge a EUR4,000,000 account receivable arising from a sale to Olivetti (Italy). Payment from Olivetti is due in three months. TEK's Italian unit does not have ready access to local currency borrowing, eliminating the money market hedge alternative. Citibank has offered TEK the following quotes: Spot rate USD1.2000/EUR 3 month forward rate USD 1.2180/EUR Three month euro interest rate 4.2% per year 3 month put option on euros at strike price 3.4% of USD1.0800/EUR TEK's weighted average cost of capital 9.8% In the context of this information, match the following graph with the appropriate labels (note there are fewer blanks than available responses): A Gain B J 1 $0 H D G Loss E What is the label for line A? Choose... What is the label for line B? Choose... What is the label for line C? Choose... What is the label for line D? Choose... What is the label for line E? Choose... > What is the label for line F? Choose... What is the label for line G? Choose... What is the label for line H? Choose... What is the label for line I? Choose... What is the label for line J? Choose... Choose... Unhedged Receivable -USD32,000 Put Option Hedge Short Forward USD 1.2260/EUR1 S(USD/EUR)90 days Hedged Receivable USD32,000 USD 1.2180/EUR1 Premium Forward Market Hedge USD1.2100/EUR1