Determine the total dollar amount received

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MK. will receive SF1,028,000 in 30 days. Use the following information to determine the total dollar amount received (after accounting for the option premium) if the firm purchases and exercises a put option:

Exercise price                                 =  $0.59

Premium                                           =  $0.05

Spot rate                                         =  $.60

Expected spot rate in 30 days          =  $.56

30-day forward rate                         =  $.62

Reference no: EM132088309

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