Hedging with a Bear Spread (See the chapter appendix.) Marson, Inc., has some customers in Canada and frequently receives payments denominated in Canadian dollars (CS). The current spot rate for the Canadian dollar is $0.75. Two call options on Canadian dollars are available. The first option has an exercise price of $0.72 and a premium of $0.03. The second option has an exercise price of $0.74 and a premium of $0.01. Marson, Inc., would like to use a bear spread to hedge a receivable position of
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