A Singaporean MNC will receive $466,000 in 3-months. Lately, the Singaporean dollar and USD relationship has been extremely unstable and thus the company decided to hedge through purchasing a put option contract. Its exercise price is $1/SGD1.22 and a premium of $.04. The company developed the following probability distribution for the spot rate of the USD in 3-months, as follows: Scenario A: $1/SGD1.19 (25 percent probability) (E=1.18) 549,880/ (S=1.15) 535,900 Scenario B: $1/SGD1.23 (50 percent probability) (E=1.18) 549,880/ (S=1.19) 554,540 Scenario C: $1/SGD1.27 (25 percent probability) (E=1.18) 549,880/ (S=1.23) 573,180 If Scenario A occurred, the MNC should: i.Exercise option and get profit ii.None iii.Ignore option and get profit iv.Ignore option and get loss v.Exercise option and get loss