s planning to buy an 18th century Mittenwald violin for his son Victor in six months from an Thomas online store in Munich, Germany, the price will be 20,000. The six-month forward rate is $1.20/. Currently he month interest rate in US is 29%, i.e. r 2% per six month. 1. If Thomas chooses to hedge using a forward contract, what is the future dollar cost of this violin? (10) 2. If he decides to hedge with a call option on Euro, what is the total expected future dollar costs of this option hedging strategy on buying 20,000, assuming that the expected future spot exchange rate is the same as the forward rate, i.e. S6$1.20/. ? (10) ha o ne net hedges