ABC is a company that just bought goods from a french company for 500 million euros with payment due in 4 months. Assume the following:

Spot rate $1.30/euro

4 month forward rate $1.31/euro

4 month french interest rate 8% pa; US 6% pa

4 month call option on euros at a strike price of $1.29/euro with a 3% premium

4 month put option on euros at a strike price of $1.305/euro with a 4% premium

Questions:

1, The proceeds of the forward market hedge are?

2. The proceeds of the money market are?

3.The future value of the appropriate premium is?

4. Breakeven exchange rate between forward market hedge and your option alternative?

Please show how you got the answers so I can understand