$17\mathrm{.}50\%$ per annum as its weighted average cost of capital. Today's foreign exchange and interest rate quotations are as follows: $.$

Farah's treasury manager, concerned about the Guatemalan economy, wonders if Farah should be hedging its foreign exchange risk. The manager's own forecast is as follows: $.$

a$.$ How much in U$.$S$.$ dollars will Farah Jeans pay in $6$ months without a hedge if the expected spot rate in $6$ months is Q$8\mathrm{.}19/$$$?$ Q$7\mathrm{.}37/$$$?$ Q$6\mathrm{.}43/$$$?$

b$.$ How much in U$.$S$.$ dollars will Farah Jeans pay in $6$ months with a forward market hedge?

c$.$ How much in U$.$S$.$ dollars will Farah Jeans pay in $6$ months with a money market hedge?

d$.$ Which method would you select and why?

a$.$ How much in U$.$S$.$ dollars will Farah Jeans pay in $6$ months without a hedge if the expected spot rate in $6$ months is Q$8\mathrm{.}19/$$$?$

$ $($Round to the nearest dollar.$)$

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$