Consider the currency risk faced by Walt Disney Company $($DIS$),$ which generates revenues from all over the world. One of its biggest

sources of income is Tokyo Disney. The firm expected to receive $500mln$ from its Tokyo operation in three months and another $500$

$mln$ in six months. It would like to lock in the exchange rate on these two cash flows and thereby eliminate the risk of an unfavorable

move in exchange rates. The investment banker indicates that the three$-$month forward $\frac{\text{\$}}{?}$ rate is $0\mathrm{.}009123.$ The investment banker

also offers a six$-$months forward contract at a rate $0\mathrm{.}009178$ $ What hedging strategy Disney will take? How much home currency

will the company receive from its operation in Tokyo in six months?

Select one:

a$.$ short forward. $$4561500$

b$.$ long forward. $$54\mathrm{.}8mln$

c$.$ long forward. $$4589000$

d$.$ long forward. $$4561500$

e$.$ short forward. $$54\mathrm{.}8mln$

f$.$ short forward. $$4589000$

g$.$ long forward. $$54\mathrm{.}5mln$

h$.$ short forward. $$54\mathrm{.}5mln$