Answer the following questions based on the information in Problem 9.3.

a. How can Rupert hedge his dollar exposure with currency futures? What is the difference between a futures contract and a forward contract? Do currency futures need to be traded on an Australian exchange?

b. How can Rupert replicate a long forward position with a money market hedge? What is the likely cost of such a hedge compared with a currency forward hedge?

c. How can Rupert hedge his dollar exposure with a currency option?

d. Suppose Rupert expects a dollar exposure of about $5 million every three months until his contract with Anheuser-Busch expires in five years. How can Rupert hedge his dollar exposure with a currency swap?