Question: please help if you know hel to do this correctly You plan to visit Geneva, Switzerland in three months to attend an international business conference.

please help if you know hel to do this correctly please help if you know hel to do this correctly You plan

You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the total cost of SF 6,649 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.64/SF and the three-month forward rate is $0.63/SF. You can buy the three-month call option on SF with the exercise rate of $0.73/SE for the premium of $0.04 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 10 percent per annum in the United States and 4 percent per annum in Switzerland. Calculate your expected dollar cost of buying SF6,649 if you choose to hedge via call option on SF (keep two decimals, e.g., "1500.29")

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