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option on won with a Won 1,200/$ strike rate has a 3.3% premium, while the 6 -month put option at the same strike rate has
option on won with a Won 1,200/$ strike rate has a 3.3% premium, while the 6 -month put option at the same strike rate has a 2.8% premium. exchange exposure. a. How much in U.S. dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won1,115/\$? Won1,165/S? b. How much in U.S. dollars will Bobcat pay in 6 months with a forward market hedge? c. How much in U.S. dollars will Bobcat pay in 6 months with a money market hedge? d. How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won1,200/\$? To be Won1,300/\$? e. What do you recommend? How much in U.S. dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won 1.165/$ ? (Round to the nearest cent.) b. How much in U.S. dollars will Bobcat pay in 6 months with a forward market hedge? (Round to the nearest cent.) c. How much in U.S. dollars will Bobcat pay in 6 months with a money market hedge? 9 (Round to the nearest cent.) d. How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won1,200/\$? \$ (Round to the nearest cent.) How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be Won1,300/\$? \& (Round to the nearest cent.) e. What do you recommend? (Select from the drop-down menu.) The provides the lowest certain cost hedging method for payment settlement
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