A Japanese importing firm is expected to make payment of ?2.5 million in 180 days. The firm can handle its open position in using the following methods: Method 1: Use a 180-day forward contract with a forward / exchange rate of 210.45. Method 2: Use a 180-day option on with an exercise price of 208.75 per and a premium of 1.45 per . (Note: Be sure to state what kind of option on the firm used) Method 3: Do nothing. Note: Show your work and keep you answers to 4 decimal points if necessary. Be sure to show your work. a) If the (spot) / exchange rate 180 days from now were 209.65, which of the above methods should the firm adopt if it wants to minimize the amount of payment made? Find the total amount of paid? Be sure to explain what kind of forward and option options on ? the firm used to eliminate its open position. (15 points) b) What would be the maximum amount of (per ) paid in 180 days? Explain. (5 points) c) Will the firm ever use Method 1 to handle its open position? Yes/No, explain. (5 points)