Aoswer all barits of the itesthen Question 1: fifferent types of risk faced by the multinationat Cola (k0) patent company in the U.S. has sold inventory in Spain for $27,500,000 spot rate $0.8675/e Currest spot hate $0.66751 e Coca Cola (KO) 's parent cost of capital is 12.0% US 120 day borrowing rate is 7.0% p.a. US 120 day investing rale is 5.0% p.a. US 180 day bocrowing rate is 6.0% p.a. US 180 day investing rate is 5.5% pha. Spain 120 day borrowing rate is 20.0% p.a. Spatin 120 day investing rate is 8.0% p-1. Spain 180 day borrowing rate is 9.08 p. Spain 180 day investing rate is 8.5% p.n. Your tearn of legendary financial analysts expect future spot rate in 120 days to be 50.7900. (a) Provide 3 possible scenarios where transaction expostre can exist? (b) Evaluate the pros and conss of hedging as a risk management tool. Give an example of each. (c) Based on the above information, analyse the inpjact of - Remaining unhedeed - Forward hedging - Moncy market hedging (d) If you wate to hicdpe the risk by either taing a forwand of a mogey bedge; which hedgiag tectinigue would you recoinmiend to the CFO) Part of your nioalynis should include the herek-even rate. Explain your answer. Aoswer all barits of the itesthen Question 1: fifferent types of risk faced by the multinationat Cola (k0) patent company in the U.S. has sold inventory in Spain for $27,500,000 spot rate $0.8675/e Currest spot hate $0.66751 e Coca Cola (KO) 's parent cost of capital is 12.0% US 120 day borrowing rate is 7.0% p.a. US 120 day investing rale is 5.0% p.a. US 180 day bocrowing rate is 6.0% p.a. US 180 day investing rate is 5.5% pha. Spain 120 day borrowing rate is 20.0% p.a. Spatin 120 day investing rate is 8.0% p-1. Spain 180 day borrowing rate is 9.08 p. Spain 180 day investing rate is 8.5% p.n. Your tearn of legendary financial analysts expect future spot rate in 120 days to be 50.7900. (a) Provide 3 possible scenarios where transaction expostre can exist? (b) Evaluate the pros and conss of hedging as a risk management tool. Give an example of each. (c) Based on the above information, analyse the inpjact of - Remaining unhedeed - Forward hedging - Moncy market hedging (d) If you wate to hicdpe the risk by either taing a forwand of a mogey bedge; which hedgiag tectinigue would you recoinmiend to the CFO) Part of your nioalynis should include the herek-even rate. Explain your