A U.S. firm holds an asset in Israel and faces the following scenario in Israeli Shaekel (IS):

Probability Case 1 Case 2 Case 3

25% 50% 25%

Spot Price ($/IS)0.3000 ($/IS)0.2000 ($/IS)0.1500

Israeli Shaekel price of asset held by U.S. Firm IS2000 IS5000 IS3000

U.S. Dollar price of the same asset $600 $1000 $450

Which of the following would be an effective hedge?

	a.	Sell 53 Israeli shekels forward at the 1-year forward rate, F1($/IS), that prevails at time zero.
	b.	Buy 53 Israeli shekels forward at the 1-year forward rate, F1($/IS), that prevails at time zero.
	c.	Sell 12,898 Israeli shekels forward at the 1-year forward rate, F1($/IS), that prevails at time zero.
	d.	None of the above.