PepsiCo, Inc. (a U.S. based firm) negotiates a conditional currency call options with a bank to hedge its accounts payable of 8 million Malaysian ringgit due on November 1 . PepsiCo, Inc. will only exercise its option on the due date. The terms of the conditional currency call options are as follows: K (exercise price )=$0.20 per Malaysian ringgit, Trigger =$0.18 per Malaysian ringgit, premium =$0.025 per Malaysian ringgit, expiration date = November 1. If the spot rate on the due date, i.e., November 1 , is $0.19 per Malaysian ringgit, what is the amount of U.S. dollar that PepsiCo, Inc. expects to pay for its 8 million Malaysian ringgit? \$1.52 million. $1.72 million. $1.60 million. $1.80 million. Question 13 (3.59 points) Due to , market forces should realign the spot rate of a currency among banks. covered interest arbitrage forward realignment arbitrage locational arbitrage