$2)$ You have a $100,000$ British Pound $($GBP$)$ receivable in $1$ year. A GBP put option with a strike price of

GDPUSD $1\mathrm{.}46$ is available for a premium $($commission$)$ of $$0\mathrm{.}05.$ In a payoff profile, show how to hedge

this receivable with a forward exchange rate contract.

Suppose the actual spot exchange rate in one year is:

a$)1\mathrm{.}44$

b$)1\mathrm{.}45$

c$)1\mathrm{.}46$

d$)1\mathrm{.}47$

e$)1\mathrm{.}48$

Calculate the total profit or loss from the receivable. Calculate the profit or loss from the put option.

What is the net profit or loss from hedging?