Trak Co., based in the U.S., considers a project in which it has an initial outlay of $1 million and expects to receive 5 million Swiss francs (SF) in one year. The spot rate of the Swiss franc is $0.62. Trak Co. decides to purchase put options on Swiss francs with an exercise price of $0.5 and a premium of $0.01 per unit to hedge its receivables. It has a required rate of return of 12 percent. Determine the net present value of this project for Trak Co. based on the forecast that the Swiss franc will be valued at $0.70 at the end of one year. O a. $2,357,009 O b. $ 1,182,143 O c. $ 1,851,469 O d. $2,075,894 O e. $2,204,158