Saved Kansas Corp., an American company, has a payment of E6.5 million due to Tuscany Corp. one year from today. At the prevailing spot rate of 0.90 E/$, this would cost Kansas $7,222,222, but Kansas faces the risk that the E/$ rate will fall in the coming year, so that it will end up paying a higher amount in dollar terms. To hedge this risk, Kansas has two possible strategies. Strategy 1 is to buy E6.5 million forward today at a one-year forward rate of 0.89 E/$. Strategy 2 is to pay a premium of $115,000 for a one-year call option on E6.5 million at an exchange rate of 0.88 E/$. a. Suppose that in one year the spot exchange rate is 0.85 E/$. What would be Kansas's net dollar cost for the payable under each strategy? (Round your answer to the nearest whole dollar amount.) Net Dollar Cost Strategy 1 $ 7,303,371 Strategy 2 $ 7,501,364 b. Suppose that in one year the spot exchange rate is 0.95 6/$. What would be Kansas's net dollar cost for the payable under each strategy? (Round your answer to the nearest whole dollar amount.) Net Dollar Cost Strategy 1 S 7,303,371 Strategy 2 7,501,364