Assume That Kramer Co

Assume that Kramer Co. will receive SF800,000 in 90 days. Today's spot rate of the Swiss franc is $.62, and the 90-day forward rate is $.635. Kramer has developed the following probability distribution for the spot rate in 90 days:


The probability that the forward hedge will result in more dollars received than not hedging is:

A) 10 percent.
B) 20 percent.
C) 30 percent.
D) 50 percent.
E) 70 percent.