Question: Cencora Inc. (a U.S. based firm) negotiates a conditional currency call options with a bank to hedge its accounts payable of 46 million Polish zloty

Cencora Inc. (a U.S. based firm) negotiates a conditional currency call options with a bank to hedge its accounts payable of 46 million Polish zloty due on December 30. Cencora will only exercise its option on the due date. The terms of the conditional currency call options are as follows: K (exercise price) = $0.27 per Polish zloty, Trigger = $0.24 per Polish zloty, premium = $0.010 per Polish zloty, expiration date = December 30. If the spot rate on the due date, i.e., December 30, is $0.25 per Polish zloty, what is the amount of U.S. dollar Cencora expects to pay for its 46 million Polish zloty? Question 12 options: $11.50 million. $11.96 million. $12.42 million. $12.88 million

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