Viner Co

Subject:AccountingPrice: Bought3

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Viner Co., an Australian company, has developed the following probability distribution for the spot rate of the Chinese yuan (CNY) against the Australian dollar (A$) in six months to buy put options on CNY1.31 million with an exercise price of A$0.3572 and a premium of A$0.0358.  

·       A$0.2008 [30 per cent probability]

·       A$0.4374 [22 per cent probability]

·       A$0.5957 [(100-30-22) per cent probability]

What is the expected value of the cash to be received in A$ from the put option hedge? (enter the whole number without sign and symbol)