Question: Micron Technology, Inc. (a U.S. based firm) negotiates a conditional currency put options with a bank to hedge its accounts receivable of 20 million Australian

Micron Technology, Inc. (a U.S. based firm) negotiates a conditional currency put options with a bank to hedge its accounts receivable of 20 million Australian dollars due on May 31. Micron Technology, Inc. will only exercise its option on the due date. The terms of the conditional currency put options are as follows: K (exercise price) = $0.70 per Australian dollar, Trigger = $0.75 per Australian dollar, premium = $0.01 per Australian dollar, expiration date = May 31. If the spot rate on the due date, i.e., May 31, is $0.73 per Australian, what is the amount of U.S. dollar Micron Technology, Inc. expects to receive for its 20 million Australian dollars? Question 4 options: $14.60 million $14.40 million $14.00 million $13.60 million

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