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A U. S.- based MNC expects to receive GBP 75,000 from an affiliate in 30 days. The MNC purchases GBP put options maturing in 30 days to mitigate currency risk. The option strike price is USD 1.60, and its premium is USD 0.035. At maturity, assume that GBPUSD = 1.56.

With options, what is the net USD receipt? (use $x,xxx)

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