ts ons as Tools A United States farmer has just sold 10,000 bushels of wheat to the Indian government at a price of INR 850/bushel. Proceeds from the sale of INR 8,500,000 are due in 180 days. The US farmer is deciding if they should hedge the sale of this wheat. The current market conditions are as follows: Current Spot rate: INR 76.20 Estimated Future Spot rate: INR 76.95 Forward Rate: INR 77.50 Terms of payment 180 days WACC -8% IUS-4% INR = 6% Call Strike Price: 75.50 Put Strike Price: 76.50 Call Premium: 1% Put Premium: 1% Based upon the information above, what is the cost to hedge if the farmer choose to use an options strategy? $109,951 $111.111 O $111,423 O $109,996