$(10$ points$)$ You are a U$.$S$.-$baned importer of bicycles and just bought competieion$-$style bicycles for $102,000$ from laly. You owe $102,000$ to the Italian supplier in one year. You are concerned about the amount of dotlars you will have to pay for this purchase in one year. Suppose:

Spot exchange rate is $$1\mathrm{.}60$ per curo

Forward exchange rate is $$1\mathrm{.}35$ per curo

U$.$S$.$ interest rate is $3\mathrm{.}10\%$ per annum

Interest rate in Europe is $4\mathrm{.}10\%$ per annum

Call option with strike price of $$1\mathrm{.}40$ per euro is available with premium of $$0\mathrm{.}20$ per curo.

Put eption with strike price of $$1\mathrm{.}40$ per euro is available with premium of $$0\mathrm{.}30$ per earo.

a$-1.$ Unhedged position: Suppose you decide not to do anything. In one year, the spot rate happens to be $$1\mathrm{.}60$ per curo. What will be the total dollar cost of this purchase then?