4. An Italian importer owes u10,000,000 in one year and is planning to use currency options to hedge his exchange rate risk exposure. The strike price is X(/)=0.2524 for both calls and puts, and the current spot rate is So($/w)=0.2525. The spot rate next year is expected to be either Su(/w)=0.2641 or Sp(/)=0.2412. The interest rate in Italy is ie=0.50%, while the interest rate in Israel is in=0.75%. With this information find the option premium using both risk neutral probabilities and the replicating portfolio. Do you need to use a call or a put option? 4. An Italian importer owes u10,000,000 in one year and is planning to use currency options to hedge his exchange rate risk exposure. The strike price is X(/)=0.2524 for both calls and puts, and the current spot rate is So($/w)=0.2525. The spot rate next year is expected to be either Su(/w)=0.2641 or Sp(/)=0.2412. The interest rate in Italy is ie=0.50%, while the interest rate in Israel is in=0.75%. With this information find the option premium using both risk neutral probabilities and the replicating portfolio. Do you need to use a call or a put option