Radio Mikayi has imported a transmitter from an American Company at an invoice price of $6,000,000 for a three month credit period. Radio Mikayi has all its money tied up in its operations but it could borrow in Kenya if necessary. Given: Interest rates US - 12\% p.a. Kenya 10% p.a. Exchange rates Spot \$1/Kes 76.22 - 76.92 Three month forward $1/ Kes 64.2364.93 A three month dollar call option is available at a premium of $25,000 at an exercise price of Kshs. 66.53 each A three month dollar put option is available at a discount of $10,000 at an exercise price of Kshs.65.60 each Required: Using suitable computations, illustrate three strategies available to Radio Mikayi in managing this exposure and advice on the suitable technique. [Total: 25 marks]