A U.S. based MNC has just signed a contract with a British company that calls for the U.S. MNC to provide the British company with consulting services over a three-month period that entaits payments in British pound. The current dollar value of the contract is $128 million. At the same time the U.S. company signs a three-month contract with another British company to buy supplies for three- month delivery and agrees to settle its bill in British pounds. The dollar value of the British pound contrect is $35.744 million. At the same time, the U.S. MNC signs a contract to export $85 million worth of its finished product to Ecuador. Also, for delivery and settlement in three months (Ecuador uses the U.S. dollar as its home currency). The U.S.-based MNC is particularly worried about a high degree of uncertainty in the foreign exchange markets. So, it decides to evaluate its hedging alternatives. The following information is available: Assume the following probability distribution for the euro spot rate at the end of three montis. Onalyze the option versus the no-hedge alternatives and decide which aliemative is probably the better one of the two and why. 1. Sbow how you compure all aliernatives in terms of cost and nisk and how to cloose the beat aliernative