A$2$ A company based in the Eurozone has concluded a sale in the US for $$2$ million, payable in six months' time. The following data is available:

Spot rate:

$6$ month forward rate:

Eurodollar borrowing interest rate:

Eurodollar investment interest rate:

Strike price for a put option:

Premium for this put option:

The company's cost of capital

Required

Evaluate the company's hedging options.

$1\mathrm{.}3420$ USD$/$EUR

$1\mathrm{.}3436$ USD$/$EUR

$4\mathrm{.}3\%$ per annum

$1\mathrm{.}9\%$ per annum

$1\mathrm{.}34$ USD$/$EUR

$0\mathrm{.}5\%$

$8\%$ per annum