Case study 7 Marathon Petroleum, an American company, is due to pay a Spanish supplier 1,437,500EUR in three months' time. It is now 1/01/2020. Relevant data from the foreign currency and money market is given below: Exchange rates quoted today are: Spot rate EUR USD = 1.1340 - 1.1400 One-month forward rate EUR/USD= 1.1410-1.1510 Three-month forward rate EUR/USD = 1.1520 - 1.1660 Spain US Interest rates (p.a.) are: 2.5% -4% 6%-8% Futures market (EUR62,500 contracts, margins are USD 1,000 per contract) March (3) EUR USD = 1.1640 June (6) EUR/USD = 1.1800 September (9) EUR/USD = 1.1910 Options market (62,500 EUR contracts, premiums are quoted in cents per Euro) Call option Put option Exercise price March June March June 1.1600 2.65 3.40 0.25 0.38 1.1800 1.35 2.28 1.88 1.2000 0.66 1.12 2.25 2.99 1.15 Calculate the dollar payment using each type of hedging technique suggested by the information above and determine the best technique for the company