Singh Designer Corporation is expecting to receive 2,000,000 euros in 3 months. The treasury department provides the following information. Values Financial Information Transaction amount 2,000,000 1.754 1.765 Spot rate (S/euro forward (S/euro) Cost of capital 14% pa. 0.08 p.a. 0.08 p.a. 0.12 p.a. 0.06 p.a. Euro 3-month borrow Euro 3-month investment U.S. 3-month borrow U.S. 3-month investment Expected spot (S/euro 1.78 Options Matur 90 days Strike price: X 1.65 Premium (flat 1.25% You are required to furnish a recommendation as to whether Singh Corporation should: A. remain unhedged, B. hedge with forwards C. set up a money market hedge, or D. hedge with options. Make sure you support your recommendation with potential payoffs attributable to each possible alternative described above