25. Suppose corporate income up to $250,000 is taxed at a rate of 20 percent. Income over $250,000 is taxed at 40 percent. The taxable income of the company will be either $100,000 or $400,000 with equal probability. The company's income variability arises entirely from an exposure to currency risk. a. Draw a graph like Figure 9.2 depicting tax schedule convexity in the United States. b. What is this company's expected tax liability if it does not hedge its currency risk? c. What is the company's expected tax liability if it is able to completely hedge its "currency risk exposure and lock in taxable income of $250,000 with certainty? d. What will be the value of this hedge? 25. Suppose corporate income up to $250,000 is taxed at a rate of 20 percent. Income over $250,000 is taxed at 40 percent. The taxable income of the company will be either $100,000 or $400,000 with equal probability. The company's income variability arises entirely from an exposure to currency risk. a. Draw a graph like Figure 9.2 depicting tax schedule convexity in the United States. b. What is this company's expected tax liability if it does not hedge its currency risk? c. What is the company's expected tax liability if it is able to completely hedge its "currency risk exposure and lock in taxable income of $250,000 with certainty? d. What will be the value of this hedge