As you know, Jubei Inc. is expected to receive 1,255,000 in September (6

months) as the payment for work done in Italy.

Please evaluate the following alternatives with respect to receiving that

amount:

1. Using a forward contract

2. Using a futures contract

3. Using a money market hedge

4. Using an options contract

5. Not hedging

Prepare a memo for me explaining the expected dollar amount for each

alternative, the pros and cons

of each alternative and your recommended course of action.

The current exchange rates are $1.14150/ bid and $1.14180/ ask. These are my estimates for the

value of the Euro in 6 months:

Bid	Ask		Probability
$1.1300	$1.1303		15%
$1.1400	$1.1403		45%
$1.1500	$1.1503		10%
$1.1600	$1.1603		15%
$1.1700	$1.1703		15%