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Bobcat Company. Eobcat Company, U.S. based manufacturer of industrial equipment, just purchased a Korean company that produces plastce nuts and bolts for heavy equipment. The

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Bobcat Company. Eobcat Company, U.S. based manufacturer of industrial equipment, just purchased a Korean company that produces plastce nuts and bolts for heavy equipment. The purchabe Won 1, 1805 . The 6-moeth Korean won interest rate is \17 por annum, the 6 -month U.S dollar rate is \3 per annum, Bobcat can invest at these interest rates, or borrow at \\( 2 X \\) per annum above those rates. A. 6-month call option on won with a Won1.200/\\$ strike rate has a 4.4\\% premium, while the 6-month put option at the same strike rate has a \3.8 gremiam. Bobcat can irvest at the rates given above, or borrow at \2 per annum above those rates. Bobcat's weighed awerage cost of capeal is \10.5. Coenpare allemate ways below that Ecbcat might dal with its foerign exchange exposure. a. How much in U.S. dolars wall Bobcat pay in 6 months without a hedge if the expected spot rate in 6 manths is assumed to bo Wont,119/\\$? Wont,180/\\$? b. How much in U.S. dolars will Bobcat pay in 6 months with a forward market hedge? c. How much in U.S, dollars will Bobcat pay in 6 months wth a money market hedge? a. What do you rocommend? a. How much in U.S dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to bo Won \\( 1,119 / 5 \\) ? (Round to the nearest cent)

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