3. Plasti-Grip, Inc. Plasti-Grip, Inc., of Georgia just purchased a Korean company that pro- duces plastic nuts and bolts for automobile manufacturers. The purchase price was Won7,030 million. Won1,000 million has already been paid and the remaining Won6,030 million is due in six months. The current spot rate is Won1,200/$, and the 6-month forward rate is Won1,260/$. Additional data: Six-month Korean interest rate: 16.00% pa. Six-month U.S. interest rate: Six-month call option on Korean won at 1,200: Six-month put option on Korean won at 1,200: Plasti-Grip can invest at the rates given above or borrow at 2% pa, above those rates. Plasti- Grip's weighted average cost of capital is 25% a. Compare alternate ways that Plasti-Grip 4.00 % pa. 3.0% premium 24% premium might deal with its foreign exchange expo- sure b. What do you recommend? Why? 3. Plasti-Grip, Inc. Plasti-Grip, Inc., of Georgia just purchased a Korean company that pro- duces plastic nuts and bolts for automobile manufacturers. The purchase price was Won7,030 million. Won1,000 million has already been paid and the remaining Won6,030 million is due in six months. The current spot rate is Won1,200/$, and the 6-month forward rate is Won1,260/$. Additional data: Six-month Korean interest rate: 16.00% pa. Six-month U.S. interest rate: Six-month call option on Korean won at 1,200: Six-month put option on Korean won at 1,200: Plasti-Grip can invest at the rates given above or borrow at 2% pa, above those rates. Plasti- Grip's weighted average cost of capital is 25% a. Compare alternate ways that Plasti-Grip 4.00 % pa. 3.0% premium 24% premium might deal with its foreign exchange expo- sure b. What do you recommend? Why