On February8, you sold five futures contracts for 5,000 EUR each at a futures rate of GBP/EUR 0.91. The subsequent settlemet prices are shown in the table below:

February 9 10 11 12 15 16 17 18 with futures rate 0.92 0.93 0.95 0.98 0.97 0.96 0.97 0.99 respectively.

i.What are the daily cash flows from marking to market?

ii.What is the total cash flow from marking to market (ignoring discounting)?

( please don't answer the above questions. i added the above part for more info in order to solve the below question)

A German exporter is expectedto pay GBP 1,500,000 on April 15th, three months from now. In order to hedge this transaction, she wishes to purchase an option contract.

i.What would be the cost for an April maturity contract for hedging thistransaction? Assume that the strike price is EUR/GBP 0.72,and the option premia(per 100 GBP) are EUR 1.7 for calls and EUR 2.4 for puts.

ii.What would be the maximum cost (in euros) for this exporter in April?Assume the EUR effective rate of return is 5%.