An Australian exporter WA Co. will receive 5.14 million Chinese yuan (CNY) from a Chinese importer Sing Tao in one year. WA Co. analyses the different hedging strategies (forward, money market and options) using the market information in the following Table 1 to minimise its exchange rate risk for the Australian dollar (A$) cash flow.

1. What is the CNY costs for the money market hedging strategy based on the information in Table 1?

(enter the whole number without sign or symbol)

2. Calculate the maximum CNY costs for the options hedging strategy using the information in Table 1. (enter the whole number without sign or symbol)

TABLE 1
For Chinese yuan (CNY)
Spot rate	A$0.4619/CNY
One-year forward rate	A$0.5500/CNY
One-year CNY deposit and borrowing rate	8.20%
One-year call options	Exercise price = A$0.56
	Premium = A$0.04
One-year put options	Exercise price = A$0.61
	Premium = A$0.05
For Australian dollar (A$)
Spot rate	CNY3.4273/A$
One-year forward rate	CNY2.0280/A$
One-year A$ deposit and borrowing rate	4.56%
One-year call options	Exercise price = CNY1.70
	Premium = CNY0.18
One-year put options	Exercise price = CNY2.39
	Premium = CNY0.12