Calculate how much it will cost the company to hedge with the option if its receivables of $200,000$ curos. due in $365$ days.

The current spot rate for the euro is $1\mathrm{.}62,$ the future spot rate in $12$ months is expected to be $$1\mathrm{.}67,$ and the forward rate is $1\mathrm{.}69.$ The payable is due in $12$ months. A call option exists on euro with an exercise price of $$1\mathrm{.}68$ with a premium of $$\mathrm{.}04$ and $365-$day expiration date. A put option exists on curo, with an exercise price of $$1\mathrm{.}70,$ with a premium of $$\mathrm{.}03,$ and a $365-$day expiration date. $3$ marks