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Summit Wireless Technologies Inc is a U... based provider of wireless sound technology for intelligent devices. Summit Wireless has recently acquired a Korean company for

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Summit Wireless Technologies Inc is a U... based provider of wireless sound technology for intelligent devices. Summit Wireless has recently acquired a Korean company for Won 6.200 Milion due in three month. The current spot rate is Won 1,130 S, and the 3-month forward rate is Won 1,140/5. The 3-month Korean won interest rate is 16% per annum, the 3-month US dollar rate is 3.8% per annum Summit Wireless can also borrow money at 2% premium per annum above the interest tates. A 3-month call option on won with a Won 1.190/5 strike rate has a 4,8% premium, while the 3-month put option at the same strike rate has a 4% premium Summit Wireless WACC= 10% A. How much in U.S. dollars will Summit Wireless pay in 3 months with a forward market hedge? B. How much in U.S. dollars will Summit Wireless pay in 3 months with a money market hodgo? C. How much in US dollars will Summit Wireless pay in 3 months with an option bodge if the expected spot rate in 6 months is assumed to be less than Won 1,190 $? D. What do you recommend? (A B, OC)

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