6% Bradley Machine Corp. expects to need S$500,000 (Singapore dollars) for an accounts payable in one year. The current spot rate of the Singapore dollar is $0.50/5$ The one year forward rate of the Singapore dollar is $0.62/5$. The spot rate in one year is forecasted to be $0.61/S$. The firm's WACC is 12% per year. Assume that one year put options on Singapore dollars are available, with an exercise price of $0.63/5$ and a premium of $0.0455. One year call options on Singapore dollars are available with an exercise price of $0.60/5$ and a premium of $0.03/88. Assume the following money market rates: U.S. Singapore Deposit rate 8% 5% Borrowing rate 9% Assume that for money market hedges, the firm invests or borrows at the short-term deposit rates given above rather than at their WACC Given this information, what would be the total cost in USD to Bradley of the S$500,000 if the Call Options Hedge is chosen? OA $310,000 B. $311,428 OG $305,000 OD. $316,800 Bradley Machine Corp. expects to need S$500,000 (Singapore dollars) for an accounts payable in one year. The current spot rate of the Singapore dollar is $0.60/S The one year forward rate of the Singapore dollar is $0.62/SS. The spot rate in one year is forecasted to be $0.61/S$. The firm's WACC is 12% per year. Assume that one year put options on Singapore dollars are available, with an exercise price of $0.63/5$ and a premium of $0.04/58. One year call options on Singapore dollars are available with an exercise price of $0.60/55 and a premium of $0.03/35. Assume the following money market rates: U.S Singapore Deposit rate: 8% 5% Borrowing rate 9% Assume that for money market hedges, the firm invests or borrows at the short term deposit rates given above rather than at their WACC. Given this information, what will be the total cost in USD to Bradley of the S$500,000 one year from now if the Forward contract hedge is used? 6% O A $310,000 OB. $320,000 OC. $315.000 OD. $300,000