Assume that your company has an account receivable of 100,000,000 in six months. consider the following data:

Annual continuous compounding rates of: i_$^Deposit = 5%; i_$^Borrowing = 6%; i^Deposit = 7%; i^Borrowing = 8%; a spot exchange rate of S($/)=$1.25-30; six-month forward rate of F_6-month($/) = 20-35; a six month Put premium = $0.04/1; a six month call premium = $0.03/1; Call exercise (strike) price in six months is $1.2/) and put exercise price in six months is $1.38/).

Assume that there is a 25% chance that the spot rate in six months will be S($1.20/), a 40% chance that it will be S($1.35/), and 35% chance that it will be S($1.05/).

What is the $ amount of this receivable in six month using options, forward contracts, money markets, or no hedging strategies and which strategy do you recommend?

A) Reciveables from: put=$133,898,739.5; Forward=$145,000,000; Money Market=$123,138,992.45; No Hedge=$120,750,000

B) none of these answers

C) Reciveables from: put=$133,794,915.60; Forward=$148,670,692.47; Money Market=$124,376,559.9; No Hedge=$120,750,000

D) Reciveables from: Call=$117,000,000; Forward=$145,000,000; Money Market=$123,138,992.45; No Hedge=$1,200,000