Question: as soon as possible i will give u a like Calculate the expected dollar cost of buying 6,500 Euros by using the following information. Assume

as soon as possible i will give u a like Calculate

as soon as possible i will give u a like

Calculate the expected dollar cost of buying 6,500 Euros by using the following information. Assume that the hedging is done by a call option on Euro. The spot exchange rate is $0.60 /Euro. The three-month forward rate is $0.63 /Euro. The premium for the 3 -month call option is $0.05/ Euro The three-month interest rate is 0.06 . Answer choices: a. $4,424.88 b. $6,748.28 c. $4,683.5 d. $4,953.69

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