Question: Using the information on the tables below, what is your expected income in USD if you are going to receive $300,000CAD one year from now

Using the information on the tables below, what is your expected income in USD if you are going to receive $300,000CAD one year from now and you decide to hedge using options?\ \ Spot Price\ Spot Rate $0.76\ 1 yr forward $0.78\ Future Spot Probability\ $0.74 20.00%\ $0.76 20.00%\ $0.78 35.00%\ $0.80 25.00%\ Put Option Price\ Exercise $ 0.77\ Premium $ 0.02\ Call Option Price\ Exercise $ 0.74\ Premium $ 0.05\ Interest Rates US CAD\ Deposit 5% 4%\ Borrowing 6% 5%\ \ \ Question 2Answer\ \ a.\ $225,000\ \ \ b.\ $228,300\ \ \ c.\ $240,500\ \ \ d.\ $234,200

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