$1.$ Suppose a producer or N$-95$ Respirator Masks exports some of its product up to Canada. It expects its invoice of C$$18,000,000$ for its export to Canada to be paid in $90-$days. The current spot and the $90-$day forward rates are $$0\mathrm{.}7502/$$C$1$ and $$0\mathrm{.}7422/$$C$1$ respectively.

a$.$Calculate the company's Canadian dollar transaction exposure associated with this fee.

b$.$If the spot rate in $90-$days is $$0\mathrm{.}7489,$ what is the expected U$.$S$.$ dollar value of the invoice?

c$.$What are the types of hedges and the value to this invoice?

$2.$Suppose a U$.$S$.$ manufacturer, Patton$-$Stillwell $($P$-$S$,$ Inc$),$ sells its merchandise on account to a firm in the Netherlands for $1,800,000($euro$)$ expecting payment to be made in $60-$days. The spot rate is currently S$0=$ $$1\mathrm{.}09/.$

a$.$What amount of dollars is Patton$-$Stillwell expecting on payment for its merchandise?

b$.$If the euro weakens against the dollar to $$1\mathrm{.}03/,$ then P$-$S will expect to receive how much when the euro are converted to dollars?

c$.$ If the euro strengthens against the dollar to $$1\mathrm{.}15/,$ then P$-$S will expect to receive how much in exchange for their merchandise?