ou are a member of Chase Options , Inc . . who was asked to participate in designing hedging strategies for the following transactions Table 1 Row Currency Exchange Rates Interest Rate Contract Spot Forward US Foreign Option Strike Type Price Euros 1.67 16725 83 8 5106 / PUT 1 17 DDMIS 167 6725 1 83 85106 / CALL 1 1647 S / Pound 17 1.6818 8.2 18657CALL 17 ASIS 0. 785 10.76 975 14 . 7892 1 PUT 10.72 ASIS 0. 785 10. 76 97 14 7892 CALL 10.8025 Euro Pound 28921 2894579091 14 8911 PUT 28945 Euro OF interest ) interest ) Yen's 120 0 1165 8.7 71318 PUT 1 12815 Row Maturity Premium per Premium Foreign Currency per ( S Foreign Dollar Currency ) 180 days 0 0164 0 0466 60 days 0 0164 0.0452 60 days QUITE 0 006105 O days 0 0 07211 0. 0128 90 days 0. 0 07234 DO115 90 days 10161 ( euro pound )6 091936Probability Future Spot Exchange Exercise GROSS Option Ne Rate in 180 days Decision Dollar Cos Dollar Proceeds Proceeds 50% 0 58145 / euro 20% 0 58828 / Euro 309% 0 58928 / Euro 2506 0.59108 / euro 506 0 59258 / euro 150% 0.60125 / euro