3. (16 points) A European company based in Italy bought supplies from an American seller. The purchase created a "payable" of $3,000,000 due in 6 months. The following quotes are available to the company: Current spot rate (S/E) 1. 10 dollar per euro 6-month forward rate (S/E) 2.08 dollar per euro Dollar interest rate offered 3.5% per year Euro interest rate offered 2.8% per year Dollar denominated borrowing rate 5.096 per year Euro denominated borrowing rate H.2% per year Suggest two alternative ways for the European company to fully hedge the exchange rate risk associated with the payable, and calculate which seems more preferable if the company uses a Weighted Average Cost of Capital (WACC) rate of 16.0% (per year) to discount future cash flows. For each of the two alternatives, describe all the details of the transactions the company would make