Assume that Kramer Co. will receive SF100,000 in 30 days. Today's spot rate of the Swiss franc is $.64, and the 90-day forward rate is $.645. Kramer has developed the following probability distribution for the spot rate in 30 days. The possible spot rate is $.62, $.63, $.64, and $.65 with the probability 30%, 10%, 40%, and 20%. How many dollars will Kramer receive if it uses the forward hedge? (Please round up to a dollar):

In the previous question of Kramer Co., what is the probability that the forward hedging will be better than not hedging? (Please fill the blank with the number before %.)

1. In the previous question of Kramer Co., Kramer will not implement the forward hedge.

   True

   False