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Bobcat Company. Bobcat Compary, U.S. based manufacturer of industrial equipment, just purchased a Korean company that produces plastic nuts and boits for heary equipment. The

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Bobcat Company. Bobcat Compary, U.S. based manufacturer of industrial equipment, just purchased a Korean company that produces plastic nuts and boits for heary equipment. The purchase Won 1,175/5. The 6-month Korean won interest rate is 15% per annum, the 6 -month U.S. dollar rate is 5% per annum, Bobcat can invest at these interest rates, or borrow at 2% per arrum above Bobcat can invest at me rabes given above, or borrow at 2% pot annum above these rates. Bobcats weighted average cost of capital is 10%. Compare aiternate ways below that Bobcat migh deaf with its foreign excharge exposure. c. How much in U.S. dollars will Bobcat pay in 6 months with a money market hedge? (Round to the nearest cent.) d. How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won1,200/\$? (Round to the nearest cent.) How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be Won 1,300/5 ? (Round to the nearest cent.) e. What do you recommend? (Select from the drop-down menu.) The provides the lowest certain cost hedging method for payment settlement

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