Doctors Without Borders is planning an expedition to Haiti to help the displaced and injured in the upcoming hurricane season. For the expedition they will need 15 million Haitian Gourde, the local currency. The expedition will start in two months. Doctors Without Borders enters in a call option with strike of $ 0.019 / Gourde for $ 0.002 /Gourde. What is the profit on the hedge position if the spot rate in two months time is $ 0.013 / Haitian Gourde?

Anew 2-lane road is needed in a part of town that is growing. at some point the road will need 4 lanes to handle the anticipated traffic. if the city's optimistic estimate of growth is used, the expansion will be needed in 4 years and has a probability of happening of 40%. for the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years respectively. the probability of the pessimistic estimate happening is 20%. the expansion will cost $ 4.2 million and the interest rate is 8%. what is the expected pw the expansion will cost?