Suppose that a U$.$S$.-$based company exported goods to a Swiss firm and gave the Swiss client a choice of paying either $$50,000$ or SF $75,000$ in three months. The spot exchange rate is $$\frac{0\mathrm{.}63}{?}$ SF and the three$-$month forward rate is $$\frac{0\mathrm{.}65}{?}$ SF$.$ You are the CFO of the U$.$S$.$ company.

If you believe that the spot rate in three months is the same as the current forward rate, which currency do you think the Swiss client will choose to use for payment, and what is the expected value of this free option for the Swiss client?

US dollars; $1,250$ dollars

US dollars; $2,750$ dollars

Swiss francs; $1,923$ SF

Swiss francs; $4,365$ SF