Tiffany now has a significant influx of yen cash from its new deal to sell goods directly to Japan. Tiffany's earnings will fluctuate if it doesn't hedge this currency risk. Since the yen-dollar exchange rate is volatile, it is best to hedge to help stabilize Tiffany's earnings and reduce risk. However, the obstacle is that options prices are more expensive when there is greater volatility. Since the yen is considered overvalued, it is assumed that it will depreciate against the dollar in the future. If the yen depreciates and Tiffany converts its yen at the current spot rate, the dollars received will be