Please help me solve a, b, c, d, e, and f

6. Currency options; hedging A/P: basic concepts) U.S. Dollar Settled World Currency Options (European style) are traded at NASDAQ. Euro spot rate is currently $1.3749/. Euro (XDE) March 136 put price- $0.96; Euro (XDE) March 138 call price S1.28. The contract size is 10,000 euros per contract. Don would like to buy currency option contracts for hedging his A/P of 100,000 to be paid in late March. (a) To use option hedge, should Don buy call options or put options on ? How many contracts should he buy for hedging his A/P of 100,000? (b) The current spot rate is S1.3749/. Is the euro put option out of the money? Is the euro call option out of the money? Calculate the time value (S) for each put and call option contract, respectively (treating them as American options) (c) Calculate the option premium (S) for hedging Don's A/P of 100,000 if Don just buys one type of option. (d) Calculate Don's total cash outflow (in S; including 100,000 and the hedging position &cost) based on the following scenarios at option expiration (ignoring all commissions) $1.33/ -134,280135,280137,280138,280139,280139,280 $1.34/ $1.36/ $1.37/ $1.39/ $1.42/ Outflow (e) Now, consider Don's option position only. Please calculate his breakeven exchange rate (four decimal places) at option expiration (ignoring all commission) (f) Calculate the percentage cost (%) normalized by the spot rate and contract size for each option contract that Don buys in part (a). 6 (a) Call; 10 (contracts) (b) out of the money, S96 (per contract: out of the money: S128 (per contract) (c) S1,280 (d) Cash outflow 100,000*(-S+ max(S-1.38, 0))-1280Fill out the Table (e) 1.3928; (f) 0.93%