Assume today is 17 March 2021. A German exporter is expected to be paid for goods invoiced in Singapore dollars. The customer will pay SGD 500,000 in three months. The current 3-month forward exchange rate is bid EUR1 = SGD 1.6000 and offer 1.6080. In the option market, the German firm found the following contracts expiring in three months on 17 June 2021: Strike Cost EUR/SGD Put EUR1 = SGD 1.6800 2.5 cents per SGD EUR/SGD Call EUR1 = SGD 1.7000 3.0 cents per SGD SGD/EUR Call SGD1 = EUR 0.6061 2.2 cents per EUR (i) Describe the forward hedge to be undertaken and compute the net cash flow in euros. (5 marks) Justify the choice of option contract to hedge the German's firm risk exposure, and compute the net cash flow in euros using the spot rate on 17 June 2021. (ii)