a$.$ Evaluate the hedging alternatives for Chronos if Manny is right $($Case $1$: $$\frac{1\mathrm{.}1534}{}$ and if Manny is wrong $($Case $2$: $$\frac{1\mathrm{.}2609}{}.$ What do you recommend?

b$.$ What does it mean to hedge $120\%$ of a transaction exposure?

c$.$ What would be considered the most conservative transaction exposure management policy by a firm? How does Chronos compare?

a$.$ Case $1$: Manny is right and the spot rate in $90$ days is $$\frac{1\mathrm{.}1534}{}.$

How much in U$.$S$.$ dollars will Chronos receive in $90$ days if $100\%$ of the transaction exposure is hedged with the forward contract?

$ $($Round to the nearest dollar.$)$