SLK Co., a US importer, has to make a payment to a European supplier for a total amount of EUR 500,000. The payment will be made on mid-June 2016. SLK expects that EUR is expected to appreciate so it wants to hedge its exposure with options. The exchange rate is 1.02 USD/EUR. You have the following information. a. Specify what type of options should SLK use? b. How many standardized contracts should SLK buy? c. Using the information construct iii. At the money (closest in the money) June hedge. iv. Cut of the money June hedge