6. Assume the Swiss franc is currently trading at .985/USD. Further assume the annualized volatility of the CHF/USD exchange rate is 5% . If the three-month forward rate is CHF .98 per USD, and you decide sell dollars and buy the Swiss franc on a forward basis to hedge this revenue stream, what is the CHF/USD rate at which the value at risk (VaR ) of this trade would reach a 95 % confidence level (i.e., VaR(5% ))? 7. Intel is scheduled to receive a payment of JPY 100 million in 90 days from Sony in connection with a shipment of computer chips that Sony is purchasing from Intel . Suppose the current exchange rate is JPY103 /$, that analysts are forecasting that the dollar will weaken by 1% over the next 90 days , and the standard deviation of 90 -day forecasts of the percentage rate of depreciation of the dollar relative to the yen is 4%. a. Provide a qualitative description of Intel's transaction exchange risk . b . If Intel chooses not to hedge its transaction exchange risk , what is Intel's expected dollar revenue