Chronos Time Pieces of Boston Exports watches to many countries, selling in local currencies to stores and distributors. Chronos prides itself on being financially conservative/ At least 70% of each individual transaction exposure is hedged, mostly in the forward market, but occasionally with options. Chronos foreign exchange policy is such that the 70% hedge may be increased up to a 120% hedge if devaluation or depreciation appears imminent. Chronos has just shipped to its major North American distributor It has issued a 90-day invoice to its buyer for euro 1,770,000. The current spot rate is $1.221/Euro, the 90-day forward rate is $1.2289/euro. Chronos' treasurer, Manny Hernandez has a very good track record in predicting exchange rate movements. He currently believes the euro will weaken against the dollar in the coming 90 to 10 days, possibly to around $1.1564/euro

How much in US Dollars will Chronos receive in 90 days if 100% of the transaction exposure is hedged with the forward contract ________________

How much in US Dollars will Chronos receive in 90 days if 70% of the transaction exposure is hedged with the forward contract__________________

How much in US Dollars will Chronos receive in 90 days if 120% of the transaction exposure is hedged with the forward contract _______________

if Manny is wrong and the spot rate in 90 days is $1.2653/euroosure

How much in US Dollars will Chronos receive in 90 days if 100% of the transaction exposure is hedged with the forward contract________________

How much in US Dollars will Chronos receive in 90 Days if 70% of the transaction exposure is hedged with the forward contract_______________

How much in US Dollars will Chronos receive in 90 Days if 120% of the transaction exposure is hedged with the forward contract