Suppose that Mulien Co, a U.S.-based MNC, knows that it will need 100.000 pounds in one year in order to purchase supplies. It is considering a currency call option to hedge this payable. Currency call options on the pound with expiration dates in one year currently have an exercise price of $1.20 and a premium of $0.04. On the following graph, use the blue points (arce symbols) to prot the contingency graph for hedging this payable with a call 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: $1.17, $1.20, $1.26. Note: The vertical axis measures dollar cash outlows from the hedge, which includes the price paid for pounds and any option premium. 120 O Pound 125 Contingency Graph 124 120 1210 Dolar Cash Otom Heage 1.10 18 t 11 11 1 120 23 24 17 Pound Spot Rein One Your Dolors per Pound)