Question: RTX Inc. ( a U . S . based firm ) negotiates a conditional currency call options with a bank to hedge its accounts payable

RTX Inc. (a U.S. based firm) negotiates a conditional currency call options with a bank to hedge its accounts payable of 890 million South Korean won due on April 30. RTX will only exercise its option on the due date. The terms of the conditional currency call options are as follows: K (exercise price)= $0.00070 per South Korean won, Trigger = $0.00068 per South Korean won, premium = $0.00010 per South Korean won, expiration date = April 30. If the spot rate on the due date, i.e., April 30, is $0.00069 per South Korean won, what is the amount of U.S. dollar RTX expects to pay for its 890 million South Korean won? Question 19 options: $703,100. $712,000. $623,000. $614,100.

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