Hi, I need help with this question. I already have the answers for questions 1, 2, 4, 5, and 6 but I am missing #3.

Due to your import of wine from France, you have an account payable in three months. You desire to hedge this account using the options market. The following info (including the table below) are available to you. Calculate the outcome of this option if you end up executing it at the end of the three months. Todays date = March 1, 2020 Spot rate on the above date = $1.1450/euro Account payable amount = euro 48,000.00 Commercial interest rate on US dollar = 6 percent Assume partial option contracts can be bought or sold. (This is not realistic). In case you are not familiar, the strike prices are in 100 USD cents

Answer the following questions. Thank you. 1. Do you buy a May call or a May put (insert call or put) Answer: call put 2.If you select the May strike price of $1.14 and execute this options, what would be your outcome? (Drop $ sign in your answer): Answer: profit of $960 3. If you select the May strike price of $1.14, what would be your options premium cost at the point of entering into the options? (Drop $ sign in your answer). Answer: ? 4. Assuming that you execute this option, which May strike price is the best? Enter your selected strike price in dollar (drop the $ sign in your answer). Answer: 1.135 5. If at the end of the 3rd month the spot rate would be $1.12, what do you do with this option? a. I will execute it b. I will let it expire c. I will be indifferent. d. None of the answers in this group are relevant. Answer: B

EURO FX (CME) 125,000 euros; cents per euro \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \multicolumn{3}{|c|}{ Calls } & \multicolumn{3}{c|}{ Puts } \\ \cline { 2 - 7 } Strike Price & Apr & May & Jun & Apr & May & Jun \\ \hline 11350 & 1.67 & 2.25 & 2.67 & 0.76 & 1.34 & 1.77 \\ \hline 11400 & 1.38 & 1.98 & 2.41 & 0.97 & 1.57 & 2.00 \\ \hline 11450 & 1.11 & 1.72 & 2.15 & 1.20 & 1.81 & 2.24 \\ \hline 11500 & 0.89 & 1.49 & 1.93 & 1.48 & - & 2.52 \\ \hline 11550 & 0.71 & 1.29 & 1.72 & - & - & - \\ \hline 11600 & 0.56 & 1.10 & 1.53 & 2.15 & - & 3.11 \\ \hline \hline \end{tabular}