Question: 9. Sims Co. has a 1,000,000 Australian dollar payable due in one year. The current spot rate for the Australian dollar is $0.67572. The one-year

9. Sims Co. has a 1,000,000 Australian dollar payable due in

9. Sims Co. has a 1,000,000 Australian dollar payable due in one year. The current spot rate for the Australian dollar is $0.67572. The one-year forward rate is $0.6695. A put option with a strike price of $0.67 and premium of $.005 and a call option with a strike price of $0.67 and a premium of $0.004 are available. Sims uses the current spot rate to forecast the expected spot rate. The following money market rates are available: Deposit Rate | Borrowing Rate New York 4% 7% Sidney 5% 8% Find the expected U.S. dollar cost if Sims uses a forward hedge, an option hedge, a money market hedge, and does not hedge. Which strategy do you recommend? Forward hedge Option hedge Money market hedge sowol pull and welod cuisine Unhedged Recommendation

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