$b1,000,000$ worth $of$ product. $In$ one year the $U.S.$ firm gets

paid. $To$ hedge, the $U.S.$ firm bought put options $on$ the euro with a strike price $of1\mathrm{.}65\frac{\text{\$}}{}.$ They

paid $an$ option premium $of$ $$0\mathrm{.}01$ per euro. What dollar amount will the firm realize $(netof$

hedging costs$)$

$(i)if$ the exchange rate $is1\mathrm{.}60\frac{\text{\$}}{}at$ maturity?

$(ii)if$ the exchange rate $is1\mathrm{.}70\frac{\text{\$}}{}at$ maturity?