A U. S. firm has sold an Italian firm €1,000,000 worth of product. In one year the U. S. firm gets paid. To hedge, the U. S. firm bought put options on the euro with a strike price of $1.65. They paid an option premium $0.01 per euro. If at maturity, the exchange rate is $1.60,a. the firm will realize $1,145,000 on the sale net of the cost of hedging.
b. the firm will realize $1,150,000 on the sale net of the cost of hedging.
c. the firm will realize $1,140,000 on the sale net of the cost of hedging.
d. none of the above

Hank itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. the following are required for production of a 70-gallon batch. 2,700 ounces of grape concentrate at $0.04 per ounce 77 pounds of granulated sugar at $0.43 per pound 133 lemons at $0.79 each 350 yeast tablets at $0.24 each 350 nutrient tablets at $0.14 each 2,500 ounces of water at $0.001 per ounce hank estimates that 4% of the grape concentrate is wasted, 9% of the sugar is lost, and 32% of the lemons cannot be used. compute the standard cost of the ingredients for one gallon of wine. (round intermediate calculations and final answer to 2 decimal places, e.g.