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Thank you You hold a USD62,500 put futures option which you bought to hedge a USD receivable due in 90 days. The option has a

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You hold a USD62,500 put futures option which you bought to hedge a USD receivable due in 90 days. The option has a strike price of AUD0.81/USD and a premium of AUDO.0476/USD. Your observe the following quotes in the market: USD futures rate: AUD0.62/USD USD spot rate: AUDO.66/USD If you choose to exercise the futures option today, what is the net cash gain or loss you will receive? a. AUD8900.00 O b. AUD6400.00 O C. AUD-9375.00 d. AUD-14850.00 e. AUD11875.00

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