Question: show steps please Question 8 (6.25 points) Saved If UCD decides to use options contracts to hedge its receivables, UCD shall Buy one-year call options

show steps please
show steps please Question 8 (6.25 points) Saved If UCD decides to

Question 8 (6.25 points) Saved If UCD decides to use options contracts to hedge its receivables, UCD shall Buy one-year call options of 250,000 euros with the exercise price $1.18 per euro. Sell one-year put options of 250,000 euros with the exercise price $1.18 per euro. Buy one-year put options of 250.000 euros with the exercise price $1.18 per euro. Question 9 (6.25 points) Saved What are the expected U.S. dollars UCD ends up receiving for its 250.000 euro receivable based on its exchange rate forecasting given below? Scenario Spot Exchange Rate One Year Later $1.14 51.17 S120 Probability 15.00 5098 25.98 19 5 296 250.00

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