What is the amount of us dollar jcrew

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JCrew Inc. (a U.S. based firm) negotiates a conditional currency put options with a bank to hedge its accounts receivable of 2 million euros due on October 31. JCrew Inc. will only exercise its option on the due date. The terms of the conditional currency put options are as follows:

K (exercise price) = $1.12 per euro, Trigger = $1.14 per euro, premium = $0.03 per euro, expiration date = October 31.

If the spot rate on the due date, i.e., October 31, is $1.13 per euro, what is the amount of U.S. dollar JCrew expects to receive for its 2 million euros?

Reference no: EM132660471

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