Assume the spot rate of the is $1.7000. The British interest rte is 10%, and the US. interest rate is 11% over the 3 the US. inflation rate is 3.5% over the 360-day (1 year) period. The 180-day forward price is $1.7200/. The 180-day European call option on the S with the exercise price of 0.5800 is selling at 3% premium, while the 180-day European put option on the $ with the exercise price of 0.5900 is selling at 2% premium. Your US, based firm has an account payable of 200,000 due in 180 days. 60-day (1 year) period. The British inflation rate is 4% and A) What should be the 180-day forward rate based on Interest Rate Parity (IRP)? + What is the dollar cost of using a forward hedge? Make sure you state your position (4 marks) + B) Assume the firm has no excess cash. Use the above to calculate the dollar cost of in the forward contract. using a money market hedge to hedge 200,000 of payable due in 180 days? (6 marks)w C) Calculate the cost of an option hedge at the time the payment is due assuming yoru (6 marks) exercise the option when the payment is due D) Based on the answers in (a), (b), and (c), which hedging methods should your firm (4 marks) choose