4. You will receive SF2,000,000 on 8/31/20. You plan to use options to hedge this risk. You can use either puts or calls that expire on 9/17/20, have E = $1.05/SF, and are European. The current spot exchange rate is $0.98/SF and you forecast that on 8/31/20 the spot exchange rate will be either $1.10/SF or $0.90/SF. What is your hedging strategy? Describe all of the trades that you would make between now and 9/17/20. What risk do you face? (2 points) b. What is your hedging strategy, i.e., what are you buying or selling and how much? (6 points) Describe all of the trades that you would make between now and 9/17/20 list what you are buying or selling and the date. (4 points) a. c. 4. You will receive SF2,000,000 on 8/31/20. You plan to use options to hedge this risk. You can use either puts or calls that expire on 9/17/20, have E = $1.05/SF, and are European. The current spot exchange rate is $0.98/SF and you forecast that on 8/31/20 the spot exchange rate will be either $1.10/SF or $0.90/SF. What is your hedging strategy? Describe all of the trades that you would make between now and 9/17/20. What risk do you face? (2 points) b. What is your hedging strategy, i.e., what are you buying or selling and how much? (6 points) Describe all of the trades that you would make between now and 9/17/20 list what you are buying or selling and the date. (4 points) a. c