Question 3 the SF 100 Foto As the netrate as 8062.5t and the six month forward rate is soos You alter the emeran call certion an SF with the rotor the pot s010 SF Orth on SF with the existe SF to the pod 50 15 st At your spot enstange rate is the same as the formand cate. The sex-montly interest oleh percent per annum inner month in the United States and propers Switzerland Calculate your expected color cost of trying SF 10.000 if you choose to hedge via option on SE 5650 $7340 S520 58.980 Question 3 5 pts You plan to visit Geneva, Switzerland in six months to attend an international business conference You expect to incur the total cost of SF 10,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.62/SF and the six-month forward rate is $0.65/SF. You can buy the six-month call option on SF with the exercise rate of $0.63/SF for the premium of $0.10 per SF. Or you can buy the six-month put option on SF with the exercise rate of $0.63/SF for the premium of $0.15 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The six-month interest rate is 8 percent per annum (4% per six months) in the United States and 4 percent per annum (2% per six months) in Switzerland. Calculate your expected dollar cost of buying SF10,000 if you choose to hedge via option on SF. $ 6,250 $7,340 O $8.570 $8.980