apk, a UK Company is in the process of negotiating an order amounting 28 million with a Large German retailer on 6 month's credit. If successful, this will be first time for Zaz has exported coods into the highly competitive German Market. The Zaz is considering following 3 alternatives for managing the transaction risk before the order is finalized. Mr. Peter the Marketing head has suggested that in order to remove transaction is completely Zaz should invoice the German firm in Sterling using the current/E average spot rate to calculate the invoice amount Mr. Wilson, CEO is doubtful about Mr. Peter's proposal and suggested an alternative of invoicing the German firm in and using a forward exchange contract to hedge the transaction risk Ms. Karen, CFO is agreed with the proposal of Mr. Wilson to invoice the German firm in C but she is of opinion that Zaz should use sufficient 6 month sterling further contracts (to the nearest whole number) to hedge the transaction risk Following data is available Spot Rate = 1.1960 - 1.1970/E 6 months forward points - 0.60-0.55 Euro Cents. 6 month further contract is currently trading at 1.1943/ 6 month future contract size is 62,500 After 6 month Spot rate and future rate - 1.1873/ You are required to: 1 Calculate to the nearest the receipt for Zazple, under each of 3 above proposals. 2 In your opinion which alternative you consider to be most appropriate