Question Three $(7$ Marks$)$

Assume that ABC company expects to receive $$5800,000$ in one year. The existing spot rate of the Singapore dollar is $$\mathrm{.}62.$ The one$-$year forward rate of the Singapore dollar is $5\mathrm{.}64.$ ABC created a probability distribution for the future spot rate in one year as follows:

$\backslash$table$[[$Future Spot Rate$],[\mathrm{.}62],[\mathrm{.}65],[\mathrm{.}67]]$

Assume that one$-$year put options on Singapore dollars are available, with an exercise price of $$\mathrm{.}63$ and a premium of $$\mathrm{.}03$ per unit. One$-$year call options on Singapore dollars are available with an exercise price of $$\mathrm{.}61$ and a premium of $$\mathrm{.}02$ per unit. Assume the following money market rates:

$\backslash$table$[[,$U$.$S$.,$Singapore$],[$Deposit rate,$8\%,5\%$