After accounting for the premium paid

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Reference no: EM131458684

A firm wants to use an option to hedge 12.5 million in payable to New Zealand firms. The premium is $.04. The exercise price is $.45. If the option is exercised, what is the total amount of dollars paid (after accounting for the premium paid)?

Reference no: EM131458684

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After accounting for the premium paid : The exercise price is $.45. If the option is exercised, what is the total amount of dollars paid (after accounting for the premium paid)?

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