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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 INR1.87 million with an exercise price of A$0.3142 and a premium of A$0.0354.
A$0.2295 [36 per cent probability]
A$0.4222 [25 per cent probability]
A$0.5983 [(100-36-25) per cent probability]
What is the expected value of the cash to be paid in A$ for the call option hedge? (enter the whole number without sign and symbol)
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