Problem $2(10$ points$)$ You are a U$.$S$.-$based importer of bicycles and just bought competition$-$style bicycles for $102,000$ from Italy. You owe $102,000$ to the Italian supplier in one year. You are concerned about the amount of dollars you will have to pay for this purchase in one year. Suppose: Spot exchange rate is $$1\mathrm{.}60$ per euro Forward exchange rate is $$1\mathrm{.}35$ per euro U$.$S$.$ interest rate is $3\mathrm{.}10\%$ per annum Interest rate in Europe is $4\mathrm{.}10\%$ per annumCall option with strike price of $$1\mathrm{.}40$ per euro is available with premium of $$0\mathrm{.}20$ per euro.Put option with strike price of $$1\mathrm{.}40$ per euro is available with premium of $$0\mathrm{.}30$ per euro. a$-1.$ Unhedged position: Suppose you decide not to do anything. In one year, the spot rate happens to be $$1\mathrm{.}60$ per euro. What will be the total dollar cost of this purc