QUESTION 4 Chimichanga is a U.S. fast food chain which imports supplies from Mexico. The company will need 1,000,000 Mexican pesos (MXN) in one year to pay its suppliers. The firm expects the following exchange rate scenarios and probabilities Scenario Spot rate Probability in one year $0.0541 0.5 0.3 $0.055 $0.0559 IC 0.2 The spot rate is $0.055 per peso and the one-year forward rate is $0.0555 per peso. The U.S. interest rate is 4% and the Mexican interest rate is 11%. A call option on pesos expiring in one year costs $0.0044 per peso and has an exercise price of $0.055 per peso. What is the expected cost of hedging your payables with a call option (in $)? O $58,920 $59,040 $58,950 $58,850