Ministry of Health in Jordan han just signed a contract to purchase Corona Vaccine from UK for British Pound 3,000,000. The pu Time left 0:23:2 made in December 2020 with payment due six months later in June 2021. Ministry of Health is considering soveral hedging alternatives to reduce the exchange rate risk arining from the sale. To help the Ministry of Health make a hodging decision you have The spot exchange rate is JO1.250/Pound The six month forward rate is JD1:22/ Pound CVT's cost of capital is 11% UK 6-month borrowing rate in 9% (or 45% for 6 months) UK 6-month lending rate is 7% (or 3.85% for 6 months) Gordon 6-month borrowing rate is 8% (or 4% for 6 months) Jordan 6-month landing rate is ex (or 3% for 6 month) Juna call options for Pound 750,000; strike price JDI 28, premium price is 10% Ministry of Health forecast for 6-month upot rates is JO127/round The budget rote, or the highest acceptable purchase price for this Corona Vaccine, le 303,000,000 or JO130/Pound it Milotry of Health in Jordan chooses to hedge its transaction exposure in the forward market, it will aroteot ...Pound 3,000,000 forward at JO126 buy, J01.22 OLJI buy