Kansas corporation, an American company, has a payment of 6.1 million due to Tuscany corporation one year from today. At the prevailing spot rate of ....

Strategy 2 is to pay a premium of $111,000 for a one year call option on €6.1 million at an exchange rate of .88 €/$.

A). Suppose that in one year the spot exchange rate is .85 €/$. What would be Kansas's net dollar cost for the payable under each strategy? Round your answer to the nearest whole dollar amount.

B). Suppose that in one year the spot exchange rate is €.95 sign/$. What would be Kansas's net dollar cost for the payable under each strategy? Round your answer to the nearest whole dollar amount.