1. Taehyung Airlines Corporation (TAC) is a Korean based company that has just signed a contract with Boeing to purchase two new 747-8's for a total of USD60,000,000, with payment in two equal tranches. The first tranche of USD30,000,000 has just been paid. The next USD30,000,000 is due three months from today. TAC currently has excess cash of 25,000,000,000 Korean won (KRW) in a domestic bank, and it is from these funds that TAC plans to make its next payment. Given that the prevailing exchange rate is KRW800/USD and TAC has acquired a 90-day forward rate at KRW794/USD. The 90-day interest rate for Eurodollar is 6% and the 90-day KRW deposit rate is 5% (Euro-KRW rate is not available). TAC has the options to borrow from the Korean domestic market at the rate of 6.25% or borrow from the U.S. market at 9.375%. The premium of a 90-month USD call option with a strike price of KRW790/USD is 2.9%. The premium of a 90-day USD put option with a strike price of KRW790/USD is 1.9% (volatility is estimated at 12%). The options are available over-the-counter and the premium is payable when an option is purchased. TAC's foreign exchange advisory service forecasted the spot rate to be KRW792/USD three months later. Calculate and advise on how TAC should plan to make the payment to Boeing if TACs goal is to maximize the amount of Won cash left in the bank at the end of the three-month period.