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end an international business 10,000 for lodging, meals and Set Love spot exchange rate is $0.62/SF and the she month forward to is 50465/SE You

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end an international business 10,000 for lodging, meals and Set Love spot exchange rate is $0.62/SF and the she month forward to is 50465/SE You can buy the six-month call option on SF with the exercise rate of $0.63/SF for the premium of $0.10 per SF. Or you can buy the six- month put option on SF with the exercise rate of $0.63/SF for the premium of $0.15 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The six-month interest rate is 8 percent per annum (4% per six months) in the United States and 4 percent per annum (2% per six months) in Switzerland. If you decides to hedge SF 10,000 using money market instruments, what would be the future dollar cost of money market hedging? (Pick the closest answer) O $5,622.75 O $6.321.57 $ 6,078.43 57,533.39

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