A U.S.-based MNC exports machine tools to the eurozone and imports parts and raw materials from the eurozone. The MNC just signed a contract seli its products to an importer in the eurozone who requested to make payment in euros. At the current spot rate of \$1.0680/2, the shigment is worth $100 million. At the same time the MNC signed a contract to buy parts from a eurozone supplier and accepted to settle its psyment in euros At today's spot rate of $1.068016, the shipment is worth $40million. Both contracts require delivery and soettiement in thrie monthe. Determine the MNC's FX exposure: $100 million in cash infiow and 540 milfon cash outhow se0 milion cash intow $40 million cash outfiow 56.18 milion cash inflow | 193.63 mition infow and 637.45 million outfow A U.S.-based MNC is expecting a cash inflow of AS 108 million (AS is Australian dollar) in three months. Refer to above question. The MNC decides to hedge with options. The spot rate is \$0.6220/As. Available to the MNC are call options with three-month expiration, an exercise price of \$0.6290/AS, and a premium of \$0.0056/AS; and put options with three-month expiration, an exercise price of \$0.6290/AS, and a premium of 50.0048/AS. The three-month interest rates in the U.S. are 5.20% p.a. (deposit) and 6% p.a. (loan) and in Australia are 4% p.a. (deposit) and 5% p.a. (loan), If the MNC decides to hedgo with options, what option should it buy and how much would its cash inflow be worth in three months if it ends up exercising its option? Calis; $368,536,800 Puts; $67,405,824 Calitis; $68,536,872 Puts; S68,458,176 Pus, 167,413,600 QUESTION 3 Refer to nbove question. If the MNC decides to do a MMH, haw much would its cash inflow be worth in three montha? $36.346.666.69 567,209.173.36 S67, 506,554.48 507,341,80069 AU.S. based MNC provides consulting services to a Swiss firm. It has just signed a contract under which the Swiss firm agrees io pay the U.5.-besed MNC $60 million in three months. The spot rate today is \$1.06001SF. The threo-month forward rate is $1.0600.5F. Given that the MNC aiways hedges its FX exposure, it should Enter inito a three-month forward contract to sell 560 million and in three months recelve SF63, 600,000 Enter into a three-month forward contract to sell 560 million and in three months receive 5.56,603,773.58 Enter into a three-tronth forward contract to buy 5.0 milion and in three months recaive 5F56,603.773.58. Hane of tite atione