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Wesfarmers has developed the following probability distribution for the spot rate of the Indian rupee (INR) against the Australian dollar (A$) in six months to
Wesfarmers has developed the following probability distribution for the spot rate of the Indian rupee (INR) against the Australian dollar (A$) in six months to buy call options on INR1.11 million with an exercise price of A$0.3050 and a premium of A$0.0340. A$0.2268 [40 per cent probability] A$0.4464 [33 per cent probability] A$0.5703 [27 per cent probability] What is the expected value of the cash to be paid in A$ for the call option hedge?
I must get the answer 341569. Show the steps clearly with working
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