$7.$ At a you her f grain in pays $2$ the idysafter you receive your grain. You face the following exchange rates and interest rates: spot rate.Y$106\mathrm{.}35/$S; $90-$day forward rate, Y$106\mathrm{.}02/$$; $90-$day USD interest rate, $3\mathrm{.}25\%$ p$.$a$.$; and $90-$day JPY interest rate, $1\mathrm{.}9375\%$ p$.$a$.$a$.$ Describe the nature and extent of your transaction foreign exchange risk.b$.$ Explain two ways to hedge the risk.c$.$ Which of the alternatives in part b is superior?