Big Metal Company produces Grade $1$ copper. The company sells copper one year in advance and unfortunately, sales contracts for the next year have not met expectations and the company is expecting to produce $250,000$ pounds of Grade $1$ copper that will be unsold $($held in inventory$)$ at the end of this year. You are the company's Treasurer and have been asked to hedge a possible future decrease in the price of copper in $1$ year.You have the following information: The one$-$year forward price for copper is $$3\mathrm{.}90$ per pound Each forward contract on copper is for $25,000$ pounds of Grade $1$ copper The price of a one$-$year, European, $$3\mathrm{.}70-$strike call option $=$ $$0\mathrm{.}3950$The risk$-$free continuously compounded interest rate is $6\%$ for all maturities.You want to use a put option to hedge your exposure since the company wants to capture price increases but cannot sell below $$3\mathrm{.}70$ per pound at a profit. Unfortunately, there are no copper put options available. But you remember from FIN $403,$ that there is a way to create a synthetic $$3\mathrm{.}70-$strike European put option to hedge your exposure.Compute the dollar cost of hedging the $250,000$ pounds of copper inventory using synthetic $$3\mathrm{.}70-$strike European put options.HINT: Treat copper as a non$-$dividend paying stock.

$*********$Needs to be done with the put call parity formula. C$-$P$=$So$-$K