17. AUS company has a pound 2 decide to on pays on contracts tem e s in 10 days Theory mange from this i s A day call option contract for BP 2 million with the rate=51.7AP. Ga premium per British pounds S002 A O day put option contract for BP 2 million with shrike rate 51.750P. PUR premium per British pounds S002 1) (2pts) Which option contract the company need to purchase? Briefly explain boutin out Henr, go with call optan. 2) (2pts) 90 days later, if the spot rate becomes $1.7900/BP, what will be the company's decision for the option contract? Why? Exercise option 3) (2pts) Calculate US$ cost of the US company at the expiration date of the option based on the decision in 2). TOTal Dona 2 million (1.74)- 3480ooo Total Promuns 2 million (0.02) 40,000 Net us pollar: 3,440,000