A US firm has sold an Italian firm 1,000,000 worth of product. In one year the US firm gets paid. To hedge, the US firm bought put options on the euro with a strike price of $1.63/. They paid an option premium of $0.01 per euro. Assume the one-year dollar interest rate is 6.1%, which of the following would be true? The US firm will have an incentive to exercise the put option if the spot rate is $1.59/. The US firm's payoff net the cost of hedging after exercising the option in this case will be $1,620,000. The US firm will have an incentive to exercise the put option if the spot rate is $1.71/. The US firm's payoff net the cost of hedging after exercising the option in this case will be $1,620,000. The US firm will not have an incentive to exercise the put option if the spot rate is $1.71/. The US firm's payoff net the cost of hedging after exercising the option in this case will be $1,700,000