A US firm anticipates receiving 10 million Swedish Krona (SEK) in one year from a new contract that they just signed. They plan to pay this out as a dividend once they receive it. They also plan to use a forward contract to lock in an exchange of the SEK to US dollars. The current savings rate in the US is 1%/year and the rate to save in SEK is 2.8%/year. The current exchange rate is 0.1475 USD per SEK. (3 points) What is the present value of 10 million SEK to be received at time t = 1 in SEK? (b) (3 points) What is the present value of 10 million SEK to be received at time t = 1 in US dollars? (c) (3 points) What is the future value, at t = 1, of 10 million SEK to be received at time t = 1 in US dollars? (d) (3 points) What dividend in USD should the firm promise its shareholders? (e) (3 points) Suppose that immediately after entering into the forward exchange agreement, the existing contract that had promised a profit of 10 million SEK is reduced to only 5 million SEK. List at least 3 risks that the firm will be exposed to from the forward agreement.