Calculate the payment that OptiGuard Co is expected to pay in one month to the US supplier if it: (a) hedges the risk using the forward market. (2 marks) (b) hedges the risk using the money market. (3 marks) (c) does not hedge the risk and the $ to 1 spot exchange rates in one months time are 1.2192 1.2421. (1 mark) 2.2 Calculate the receipt that OptiGuard Co will expect to receive in three months from the US customer if it: (a) hedges the risk using the forward market. (2 marks) (b) hedges the risk using the money market. (3 marks) (c) does not hedge the risk and the $ to 1 spot exchange rates in three months time are 1.2017 1.2353. (1 mark) 2.3 Explain the factors that OptiGuard Co should consider before deciding to hedge the risk using the foreign-currency markets, and identify any alternative actions available to minimise risk. (5 marks) 2.4 Briefly explain what is meant by foreign currency options and provide examples of the advantages and disadvantages of exchange traded foreign currency options. (5 marks)