Question: Question 1 (3 points) Saved ABC Corporation, located in the United States, sold goods to a German firm and payment of 350 million is

Question 1 (3 points) Saved ABC Corporation, located in the United States,

Question 1 (3 points) Saved ABC Corporation, located in the United States, sold goods to a German firm and payment of 350 million is due in one year. The current spot rate is $1.087/, and the one-year forward rate is $1.069/. ABC can buy a one-year put option on euros at a strike price of $1.07/ for a premium of $.002/. Assume that the forward rate is the best predictor of the future spot rate. What will ABC's net proceeds from the sale of the foreign currency be if it uses an option hedge and the spot rate after a year turns out to be exactly equal to the forward rate today? $379,033,200 $371,630,626 $373,800,000 $375,209,800

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