6. A US company has land in Acapulco that will likely be sold in the next year. There are two possible states of the world. With a probability 50% the exchange rate will be $0.2600/P. In this case the land will be worth P 10,000,000. With a probability 50% the exhange rate will be $0.2808/P and the land will be worth P 9,111,111. How would you use financial hedging to hedge this exposure? (a) Buy P 2,000,000 forward (b) Buy P 10,000,000 forward (c) Sell P 9,111,111 forward (d) Sell P 1,960,000 forward (e) None of the above 7. A US company has land in Toronto that will likely be sold in the next year. There are two possible states of the world. With a probability 50% the exchange rate will be $1.1000/C$. In this case the land will be worth C$450,000. With a probability 50% the exhange rate will be $1.1220/C$ and the land will be worth C$454,500. How would you use financial hedging to hedge this exposure? (a) Sell C$679,500 forward (b) Buy C$450,000 forward (c) Sell C$454,500 forward (d) Buy C$665,910 forward (e) None of the above 6. A US company has land in Acapulco that will likely be sold in the next year. There are two possible states of the world. With a probability 50% the exchange rate will be $0.2600/P. In this case the land will be worth P 10,000,000. With a probability 50% the exhange rate will be $0.2808/P and the land will be worth P 9,111,111. How would you use financial hedging to hedge this exposure? (a) Buy P 2,000,000 forward (b) Buy P 10,000,000 forward (c) Sell P 9,111,111 forward (d) Sell P 1,960,000 forward (e) None of the above 7. A US company has land in Toronto that will likely be sold in the next year. There are two possible states of the world. With a probability 50% the exchange rate will be $1.1000/C$. In this case the land will be worth C$450,000. With a probability 50% the exhange rate will be $1.1220/C$ and the land will be worth C$454,500. How would you use financial hedging to hedge this exposure? (a) Sell C$679,500 forward (b) Buy C$450,000 forward (c) Sell C$454,500 forward (d) Buy C$665,910 forward (e) None of the above