USA needs to PAY 10,000,000 Euros (E) in 252 days ( = .70 yr) to a European supplier. USA is concerned about exchange rate risk on the future US$ cost to meet this E payable. Spot rate today is $1.13 / E

ANNUAL deposit (investing) rate is: Europe = 2.75% ; USA = 6.25%

ANNUAL borrowing rate is: Europe = 4.25% ; USA = 8.4%

CALL option is available with 252 -days to maturity, with Strike price of $1.13 / E with a premium of $.022 /E

PUT option is available with 252-days to maturity with Strike price of $1.13 / E with a premium of $.024 / E

USA forecasted the +252-day future expected Spot Rate as follows:

Possible Spot +252	Opt. Premium per Euro	At $1.13 Spot Exercise Option Yes or No?	Net Price/ Euro (Include Option Premium)	2-B Option hedge Total All-in Net $ Amount at possible future Spots	Number
$1.115/ E					2-B-1
$1.125/ E					2-B-2
$1.135/ E					2-B-3
$1.145/ E					2-B-4