1. A U.S. exporter has a 1,000,000 receivable due in one year. Suppose the current spot exchange rate S(S/E) = $1.2/, the one-year forward exchange rate F360($/) = $1.25/, the annual U.S. interest rate is = 5%, and the annual euro zone interest rate ie = 4%. a. How to implement a hedge against the euro receivable using a forward contract? Compute the guaranteed dollar proceeds in one year using the forward hedge. b. How to implement a money market hedge against the euro receivable? Compute the guaranteed dollar proceeds in one year using the money market hedge. c. Suppose that the U.S exporter decides to hedge using a one-year put option on 1,000,000 and paid a premium of $0.02/ for the put option. The put option has an exercise price of $1.28/. What would be the dollar proceeds in one year if the spot exchange rate S(S/E) - $1.25/ in one year