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Question: P&G corporation has purchased currency put options to hedge a 88,000 euro receivable. The premium is $.04 (per unit of euro) and the exercise price of the option is $1.16 per euro. If the spot rate at the time of maturity is $1.06 per euro, what is the total amount of dollars received (after accounting for the premium paid)?

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Basic Finance, Finance

Category:- Basic Finance
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