Diageo Inc. is expecting to pay 750,000 Australian dollars (AU$) in one year. Diageo expects the spot rate of Australian dollar to be $0.80/AU$ in a year, so it decides to avoid exchange rate risk by hedging its payables. The spot rate of the Australian dollar is quoted at $0.73/AU$. The one-year forward rate exhibits a 6% premium. How does Diageo Inc. use forward contracts to hedge the exchange rate risk for the 750,000 Australian dollars payables and how many U.S. dollars Diageo Inc. will pay? Sell Australian dollars forward and pay $600,000. Buy Australian dollars forward and pay $580,350. Buy Australian dollars forward and pay $600,000. Sell Australian dollars forward and pay $580,350