Pls do not handwrite the answer, this is for easy reading

Question:-

OK-Lah Pte Ltd, a Singapore based company, needs to import goods from the US for a total of 5 million USD, to be paid in 3-month' time. The current exchange rate USD/SGD is 1.32, but Mrs. Tan, OK-lah's treasurer, is well aware that this rate may change in 3 months' time, and is envisaging to hedge herself with an option. She has thus obtained the following prices, which show the bid and ask prices for each option.

USD/SGD Options Expiry in 3 months (American options) Premium in SGD per USD

CALLS(USD Call/SGD Put	Strike Price	PUTS(USD Put/SGD Call)
0.052-0.055	1.3	0.014-0.017
0.036-0.38	1.31	0.017-0.019
0.024-0.025	1.32	0.021-0.022
0.017-0.019	1.33	0.04-0.042
0.008-0.011	1.34	0.058-0.061

A) what is the risk incurred by OK-Lah? B) Which option is she going to engage in? Describe how she should do it (buy or sell). C) if, 3 months later, the USD?SGD rate has moved to 1.28 or 1.30, or 1.32 or 1.35 or 1.38 or 1.50, simulate how much OK-lah will have to pay if Mrs. Tan did not hedge her exposure. Calculate also how much she will have to pay if she put in place the option hedge defined above(present the results in the table her below).

No hedge Option

Spot USD/SGD	Formula	SGD cost	formula	SGD cost
1.28
1.30
1.32
1.35
1.38
1.50