Question 1 Assume you are a foreign exchange analyst at GHL Bank in Namibia. You have been approached by a customer who intends to pay Botswana Pula (BP300 000) in 30 days' time. The following information exists. - Spot rate = NAM\$ 1.20 for 1BP - 30-day forward rate =NAMS 1.25 for 1BP Interest rates are as follows: - A call option that expires in 30 days has an exercise price of NAM\$1.25 and a premium of NAMS0.04. The size of the contract is BP300 000 . You have forecasted the future spot rate in NAMS for BP in 30 days as follows: Required: (a) Given the information above, advise the customer on how he can use the two hedging techniques (call option and forward contract) in order to buy BP300 000 at the lowest cost. (15) b) Calculate the expected value (in Rands) used by the customer to buy BP300 000 in 30 days' time if he chose to remain unhedged against foreign exchange rate risk. (6)