You have a 1 million payable due in 3 months. Show on a chart

a) The dollar cost of the unhedged payable as a function of the spot exchange rate 3 months from now

b) The profit (loss) from a 3-month 1 million call option with a strike price of $1.75/ and a premium of $0.40/.

c) Your total cash flow 3 months from now

d) What would be your total cash flow if you hedged with a forward contract. Assume that the forward price is also $1.75/