Titanic Cruise Company (U.S.-based company) bought a ship from JPP Company for 200 million yen payable in one year. The current spot rate is 124/$ and the one-year forward rate contains a 11% discount. The annual interest rate is 5 percent in Japan and 8 percent in the United States. Titanic Cruise can also buy a one-year option on yen at the strike price of $.0081 per yen for a premium of .014 cents per yen; $1= 100cents. Calculate the future dollar costs of meeting this obligation using the money market and forward hedges. Assuming that the forward exchange rate is the best predictor of the future spot rate, compute the expected future dollar cost of meeting this obligation when the option hedge is used. At what future spot rate do you think Titanic may be indifferent between the option and forward hedge?