Suppose that AUCA is to import materials for Medical School from Germany for $US 2.5 million where $US 1 million has been paid cash and $US 1.5 million to be paid in six months and AUCA has negotiated a letter of credit worth $US 1.5 million from Bank Kigali Plc. Being risk averse, AUCA arranged a call option to buy $US 1.5 million for Frw 1,000/$US and paid a premium of $US 25,000 to cover itself against any risk of exchange rate fluctuation. Discuss different scenarios where AUCA can make gains from this hedging strategy.