3. Currency Call Hedge on Payables. You are the treasurer of Montana Corp. and must decide how to hedge (if at all) future payables of 1 million Japanese yen 90 days from now. Call options are available with a premium of $.0001 per unit and an exercise price of $.01031 per Japanese yen. The forecasted spot rate of the Japanese yen in 90 days is: Future Spot Rate $.01035 $.01032 $.01030 $.01029 Probability 20% 20% 30% 30% a. What is the probability that the call option will be exercised if Montana purchased it (10 points)? b. How much is the estimated cost of currency call hedge in $ (10 points)