INTERNATIONAL FINANCE- PLEASE WRITE OUT YOUR CALCULATIONS!!!!!

4) Assume that Jones Co. will need to purchase 100,000 Singapore dollars (SS) in 180 days. Today's spot rate of the SS is S.50, and the 180-day forward rate is S.53. A call option on SS exists, with an exercise price of S.52, a premium of S.02, and a 180-day expiration date. A put option on SS exists, with an exercise price of S.51, a premium of S.02, and a 180-day expiration date. Jones has developed the following probability distribution for the spot rate in 180 days Possible Spot Rate in 180 Days S.48 $.53 S.55 Probabilit 20% 50% 30% The probability that the forward hedge will result in a higher payment than the options hedge is (include the amount paid for the premium when estimating the U.S. dollars required for the options hedge). In order to receive any credit for this question, you must show all the calculations in similar form as the calculations I did with examples I covered in class