Please answer the following questions and all its parts(max 4 parts according to chegg). Failure to do so will result in negative rating. Try answering on a piece of paper if possible and scan it please and i will give good rating. Thanks!

Finance HW 201113 ca) Given the following information: Asset Gold Interest rate : 307 30% expiration - 6 months Spot price = $1,235 Strike price = $1,225 standard deviation = o.1 (i) Calculate, using the Black-scholes formula, the value of a Time to call option. cii) Using your answer from (i), determine the value of the Put option. cb) A company in italy suspects to pay us $2 million to a supplier in Saudi Arabia. It is now November and the payment is due in March. The current spot rate is 1 = US 41.2100, The company wants to use currency options to hedge the exposure. March currency put options are available and are for 125000 euros, have a strike price of $1.2200 and the tickesize is $0.0001. The cost of the option contract is 2.75 us cents per euro. Assuming that there is no basis, ci) Devise a hedging strategy for the Italian company using currency options. (ii) Advise on the action to be taken by the company and the outcome in case the spot rake in March when dollars must be paid is cal l = US $1.2500 CH) 1 = US $ 1,1800