Suppose that Goodwin Co., a U.S. based MNC, knows that it will receive 100,000 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 $1.19 and a premium of $0.05. 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 would like them to appear. Line segments will connect automatically. Plot the 3 blue points for the following pound spot rates: $1.14, $1.19, $1.23. Note: The vertical axis measures dollar cash inflows from the hedge, which includes the price received for pounds and any option premium. 1.18 1.17 1.16+ 1.15+ 1.14+ 1.13+ Dollar Cash Received from Hedge (Dollars per Pound) 1.12+ 1.11 1.10 1.09 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 Pound Spot Rate in One Year (Dollars per Pound) Contingency Graph (?)