Suppose that Goodwin Co$.,$ a U$.$S$.$ based MNC$,$ knows that it will receive $300,000$ pounds in one year. It is considering a currency put option to hedge

this receivable. Currency put options on the pound with expiration dates in one year currently have an exercise price of $$1\mathrm{.}21$ and a premium of

$$0\mathrm{.}04.$

On the following graph, use the blue points $($circle symbols$)$ to plot the contingency graph for hedging this receivable with a put option. Plot the points

from left to right in the order you wi

vear. Line segments will connect automatically. Plot the $3$ blue points for the following pound

spot rates: $$1\mathrm{.}17,$$$1\mathrm{.}21,$$$1\mathrm{.}25.$

Note: The vertical axis measures dollar cash inflows from the hedge, which includes the price received for pounds and any option premium.