Consider a U$.$S$.-$based company that exports goods to Switzerland. The U$.$S$.$ company expects to receive payment on a shipment of goods in three months. Because the payment will be in Swiss francs, the U$.$S$.$ company wants to hedge against a decline in the value of the Swiss franc over the next three months. The U$.$S$.$ risk$-$free rate is $3$ percent, and the Swiss risk$-$free rate is $6$ percent. Assume that interest rates are expected to remain fixed over the next six months. The current spot rate is $$0\mathrm{.}5983.$

Required:

a$.$ Whether the U$.$S$.$ company should use a long or short forward contract to hedge currency risk.

b$.$ Calculate the no$-$arbitrage price at which the U$.$S$.$ company could enter into a forward contract that expires in three months.

c$.$ It is now $30$ days since the U$.$S$.$ company entered into the forward contract. The spot rate is $$0\mathrm{.}49.$ Interest rates are the same as before. Calculate the value of the U$.$S$.$ company$$s forward position.