Answer:
forwards: U$D 6,880,733.95 dollars
call option: U$D 6,540,000.00 dollars
Explanation:
obligation within a year: ¥750,000,000
spot rate: ¥116/$1.00
foward rate in a year: ¥109/$1.00
If we hedge the obligation using the forward rate:
750,000,000 /109 = 6,880,733.94495
forwards: U$D 6,880,733.95 dollars
If we use the call option:
750,000,000 x 0.0086 dollars = 6.450.000
premium:
750,000,000 x 0.012/ cents =
750,000,000 x 0.00012 dollars=<u> 90,000 </u>
Total: 6,540,000