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Suppose that Goodwin Co., a U.S. based MNC, knows that it will receive 300,000 pounds...

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Accounting

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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 $0.03. 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 spot rates: $1.15,$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

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