You plan to visit Tinino, Switzerland in three months. You expect to incur the total cost of SF 5,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.80/SF and the three-month forward rate is $0.85/SF. You can buy the three-month call option on SF with the exercise rate of $0.87/SF for the premium of $0.05 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 1 percent in the United States and 0.75 percent in Switzerland. Question: a) What is your expected dollar cost of buying SF5,000 if you choose to hedge via call option on SF? b)What is the future dollar cost of meeting this SF obligation if you decide to hedge using a forward contract?