Assume that Baton Rouge, Inc., expects to need S$1 million in one year. Using any relevant information in part (a) of this question, determine whether a forward hedge, a money market hedge, or a currency options hedge would be most appropriate. Then, compare the most appropriate hedge to an unhedged strategy, and decide whether Baton Rouge should hedge its payables position. What is the probability that the option hedge will cost more than the forward hedge? What is the probability that the option hedge will cost more than an unhedged strategy?