Question: Intro Perfect Purchase is a U.S. electronics retailer importing consumer electronics from Japan. The company will need 18 million yen Min one year to pay

Intro Perfect Purchase is a U.S. electronics retailer importing consumer electronics from Japan. The company will need 18 million yen Min one year to pay its suppliers. The firm expects the following exchange rate scenarios and probabilities: Scenario Probability A Spot rate in one year $0.0074 $0.008 $0.0086 0.1 B 0.5 C 0.4 A call option on yen expiring in one year costs $0.0005 per yen and has an exercise price of $0.008 per yen. Attempt 2/10 for 9 pts. Part 1 What is the total cost of hedging your payables with a call option (in $)? b decimals Submit

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