A Japanese EXPORTER has a $1,200,000$ receivable due in one year.

Estimate the cost today of an options strategy that will eliminate the exchange rate risk.

$\backslash$table$[[$Listed Options,Strike,Puts,Calls$],[$Euro $(62,500),$$$1\mathrm{.}25=1\mathrm{.}00,$$$0\mathrm{.}008$ per $,$$$0\mathrm{.}0075$ per $$