"Use. (dot) for decimals. Assume you are an exporter in Turkey. You have sold drones worth of $50,000,000. Your receivable in US dollars is due in three months. Three-month maturity TRY interest rate is 17% (annual) and same maturity USD interest rate is 5% (annual). For simplicity assume that the borrowing and lending interest rates are the same. Spot exchange rate is 19.41TL/US $ and three-month forward exchange rate is 22.86TL/US$ in the foreign exchange market. The company is cash rich and has no outstanding loans. There are also currency options available in the financial market. Exercise price of a call option with a maturity of 3 months is 23.00TL per US $. The call premium is 0.25 TL per US $. Exercise price of a put option with a maturity of 3 months is 23.00TL per US $. The put premium is 0.50TL per US $. Like a forward market hedge, a hedge (also commonly called a balance sheet hedge) also involves a contract and a source of funds to fulfill that contract. In order to hedge, you need to present value of 50 million USD which is equal to million USD (use 2 digits). At the 19.41 spot rate this is equivalent to million t (use 2 digits). In order to compare with forward hedge, we calculate the future value of the proceeds as million (use 2 digits)