Cray Research sold a supercomputer to the Max Planck Institute in Germany on credit and invoiced 12.60 million payable in six months. Currently, the six-month forward exchange rate is $1.23/ and the foreign exchange adviser for Cray Research predicts that the spot rate is likely to be $118/ in six months. a. What is the expected gain/loss from a forward hedge? b. If you were the financial manager of Cray Research, would you recommend hedging this euro receivable? O Yes O No c. Suppose the foreign exchange adviser predicts that the future spot rate will be the same as the forward exchange rate quoted today. Would you recommend hedging in this case? Yes O No d. Suppose now that the future spot exchange rate is forecast to be $1.30/. Would you recommend hedging? Yes No