Question 37 8 pts Toro Company, based in the U.S., has a payable that is clue in 6 months to its Korean supplier. The amount of the payable is Won750 million. The company is looking to hedge this payable and retained your services to analyze the alternatives: forward hedge, money market hedge, and an option hedge. Use the following information to analyze the alternatives. Current spot rate (Won/$) - 1.120 Six-month forward rate (Won/S) - 1,150 Toro Company's WACC - 12% 6-month investment rates (per annum): U.S. - 6.00% Korea - 12.00% 6-month borrowing rates (per annum): U.S. - 8,00% Korea 14.00% Call option on Korean Won - Strike price 1,210 with an option premium of 3.00% Put option on Korean Won Strike price 1,210 with an option premium of 2.60% Based on your prior analysis of each alternative, which do you recommend to the company? Money Market Hedge Forward Hedge Option Hedge Remain unhedged