Question Completion Status: U$153.10 QUESTION 11 Assume that you will need to buy 13,000 in six months. The current spot exchange rate is $1.76/, one-month forward rate is $1.78/, six-month forward rate is $1.81/. The six-month interest rate is 5% per annum in Australia and 3% per annum in UK. You can either buy six-month put option on with the exercise rate of $1.75/ for the premium of $0.10/, or six-month call option on with the exercise rate of $1.80/ for the premium of $0.12/. The expected future spot exchange rate is $1.82/. What is the expected total dollar cost of buying 13,000 if you choose to hedge via option six month later? Please select the most suitable answer a. $24,999 b. $23,400 C. $23,660 d. $22,328 QUESTION 12 Instant Pot Ltd., a US company, will pay 600,000 in two months for an import order of raw materials from an European company It faces the following interests and exchange rates: Spot rate: 0.82/$