KAL has just signed a contract with Boeing to purchase two new 747-400's for a total of $60,000,000, with payment in two

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KAL has just signed a contract with Boeing to purchase two new747-400's for a total of $60,000,000, with payment in two equaltranches. The first tranche of $30,000,000 has just been paid. Thenext $30,000,000 is due three months from today. KAL currently hasexcess cash of 25,000,000,000 won in a Seoul bank, and it is fromthese funds that KAL plans to make its next payment.
The current spot rate is won 800/$, and permission has beenobtained for a forward rate (90 days), won 794/$. The 90 dayEurodollar interest rate is 6.000%, while the 90 day Korean wondeposit rate (there is no Euro-won rate) is 5.000%. KAL can borrowin Korea at 6.250%, and can probably borrow in the U.S. dollarmarket at 9.375%.
A three month call option on dollars in the over-the-countermarket, for a strike price of won 790/$ sells at a premium of 2.9%,payable at the time the option is purchased. A 90 day put option ondollars, also at a strike price of won 790/$, sells at a premium of1.9% (assuming a 12% volatility). KAL's foreign exchange advisoryservice forecasts the spot rate in three months to be won792/$.
How should KAL plan to make the payment to Boeing ifKAL's goal is to maximize the amount of won cash left in the bankat the end of the three month period? Make a recommendation anddefend it.