Sign in MindTap - Cengage Learning * *Homework Help - Q&A from Onli x + X G https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=59905950002024645218131232466&eISBN=9780357130599&id=2262485989&snapshotld=4071310& . . . Be Import favorites For quick access, place your favorites here on the favorites bar. Manage favorites now Other favorites 9 James CENGAGE | MINDTAP Q Search this course ? Final Exam X M HOME Test: Final Exam PROFILE Save Submit Test for Grading ORDERS Questions Problem 11.19 (Hedging with Put Options) Algo Question 16 of 20 A-Z 14. RENTALS 15. 16. eBook COURSES 17. As treasurer of Tucson Corp. (a U.S. exporter to New Zealand), you must decide how to hedge (if at all) future receivables of 240,000 New Zealand dollars 90 days from now. Put options are available for a premium of $0.03 per unit and an exercise price of 18. $0.44 per New Zealand dollar. The forecasted spot rate of the NZ$ in 90 days follows: 19. FUTURE SPOT RATE PROBABILITY Study Tools 25% 20. $0.46 0.43 55 0.39 20 College Success Tips Given that you hedge your position with options, create a probability distribution for U.S. dollars to be received in 90 days. Round your answers for the amount per unit received after accounting for premium to the nearest cent and for the total amount received for NZ$240,000 to the nearest dollar. Career Success Tips Possible Put Option Exercise Amount per Unit Received Total Amount Received Spot Rate Premium Option? Accounting for Premium for NZ$240,000 Probability ? Help $0.46 $0.03 -Select- V 25% $0.43 $0.03 -Select- 55% $0.39 $0.03 -Select- v 20% SIGN OUT O Icon Key Problem 11.19 (Hedging with Put Options) Algo Question 16 of 20 Save Submit Test for Grading