Wesfarmers has developed the following probability distribution for the spot rate of the Indian rupee (INR) against the Australian dollar (A$) in six months to buy call options on INR1.50 million with...

Wesfarmers has developed the following probability distribution for the spot rate of the Indian rupee (INR) against the Australian dollar (A$) in six months to buy call options on INR1.50 million with an exercise price of A$0.3169 and a premium of A$0.0383.

• A$0.2406 [39 per cent probability]


• A$0.4580 [31 per cent probability]


• A$0.5743 [(100-39-31) per cent probability]

What is the expected value of the cash to be paid in A$ for the call option hedge?