a) Assume that call currency option enable to buy of dollar for Shs XXXXXXXXXXwhile it is quoted at Shs XXXXXXXXXXin the spot market, and premium paid for call currency option is Shs. 1.00....

a) Assume that call currency option enable to buy of dollar for Shs. 50.00 while it is quoted
at Shs. 50.70 in the spot market, and premium paid for call currency option is Shs. 1.00.
a)Calculate the intrinsic value of the call?
b) Discuss the value of hedging to a firm.