A U.S. MNC expects to receive ¥750 million from its customer one year from now. The current spot rate is ¥116/$ and the one-year forward rate is ¥109/$. The annual interest rate is 3% on ¥ and 6% on USD. The put option on ¥ at the strike price of $0.0086/¥ with 1-year expiration costs 0.012 cent/¥, while the call option on ¥ at the strike price of $0.0080/¥ with 1-year expiration costs 0.009 cent/¥.

1) At what future spot rate MMH is better than option hedging?

2) At what forward rate MMH is worse than forward hedging?

3) How to hedge the ¥750 million receivable if the payment by its customer is uncertain?