Assume that Suffolk Co. imported goods from New Zealand and needs 100,000 New Zealand dollars 90 days from now. It is trying to determine whether to hedge this position. Suffolk has developed the following probability distribution for the New Zealand dollar: The 90-day forward rate of the New Zealand dollar is $0.48, and the spot rate of the New Zealand dollar is $0.42. Develop a table showing a feasibility analysis for hedging. That is, determine the possible differences between the costs of hedging versus no hedging. (1) What is the probability that hedging will be more costly to the firm than not hedging? (2) Determine the expected value of the additional cost of hedging. Possible Value of Probability New Zealand Dollar in 90 Days $0.35 5% 0.4 10% 0.43 20% 0.45 40% 0.48 20% 0.5 5% O a. (1) There is a 65% probability thay hedging will be more costly than no hedge. (2) $3800 O b. (1) There is a 60% probability thay hedging will be more costly than no hedge. (2) $4020 O c. (1) There is a 75% probability thay hedging will be more costly than no hedge. (2) $3550 O d. (1) There is a 55% probability thay hedging will be more costly than no hedge. (2) $2750