2 So NIany Options 25 points Imagine that you are taking a trip to Sweden in ve months to hand select your brand new 1Volvo XCQU, which will cost sacrum lrr {Swedish Krona]? at a local dealership. You will pay for it when you arrive, drive it around htalmo, then it will be shipped hack to your residenoe in the United States. 1E'ou currently have US dollars in your bank account. Suppose that the spot exchange rate is Sl', the forward rate for 5 months from now is 8.61m" $, and there is a call option available which will expire 6 months from now with a striking price of 43.me and a premium of [1.2 US cents per kronor. a} [5 points) What are the different ways you could arrange to pay for your new 1090? h} [ll] points} Assume that you bought the call option described above. If the spot exchange rate 5 months from now {when you arrive in Sweden) is Skrfi. then should you exercise your option or let it expire? c} [It] points] Calculate how much money you would make {or lose} if you 1] let the option expire or 2} exercise the option