5. Banbury Inc. needs to order supplies two months ahead of the delivery date. It is considering an order from a Japanese supplier that requires a payment of 14.5 million Yen payable as of the delivery date Banbury has two choices: a. Purchase call options contracts (contract size 6,250,000 Yen) b. Purchase futures contract (contract size 12.5 million Yen) Expected spot rate at the delivery date is equal $0.006912. As an analyst for Banbury, you have been asked to offer insights on how to best hedge the .exposure. Use the following information to answer the question. Before After Spot $0.0072 $0.0072 S0.0072 Option Information Exercise Price $0.00756 $0.00792 % above Spot 5% 10% Option Premium $0.0001512 S0.0001134 2.0% 1.5% Premium % of exercise price Futures Contract Information Futures Price $0.006912