E. Suppose it is end of November EGGE, and Porsche reviews its hedging strategy for the cash ows it expects to obtain from vehicle sales in North America during re calendar year EGGS. Assume that Porsche entertains three scenarios: The expected volume of North American sales in EGGS is SEESG vehicles. The lowsales scenario is 3G% lower than the expected sales volume, and the tdghsales scenario is SUSS higher than the expected sales volume. Assume, in each scenario, that the average sales price per vehicle is $SG,GG-G and tat all sales are realized at the end of November EGGS. All variahle costs incurred by producing and stripping an additional vehicle to he sold in North America in EGGS are billed in 1E and amount to 6G,GGG per vehicle. Characterize how Porsche's E cash ows, net of variable costs, obtained from its North American sales depend on the spot exchange rate that prevails at the end of November EGGS, if: a. Porsche does not hedge its currency exposure at all; h. Porsche hedges by selling forward US$ equal to the amount of expected EGGS sales with a twoyear forward contract; c. Porsche hedges by buying twoyear European atthemoney put options on USS (providing to Porsche the right to sell USS, receiving 3 at the strike exchange rate} in sufficient quantity to have the right to sell an amount of US$ equal to expected EGGS sales