Farah Jeans. Farah Jeans of San Antonio, Texas, is completing a new assembly plant near Guatemala City. A final construction payment of 8,800.000 is due in six months. ("Qis the symbol for Guatemalan quetzals.) Farah uses 18,50% per annum as its weighted average cost of capital. Today's foreign exchange and interest rate quotations are as follows: Farah's treasury manager, concerned about the Guatemalan economy. wonders i Farah should be hedging its foreign exchange risk. The manager's cwn forecast is as follows: a. How much in US dollars will Farah Jeans pay in 6 months without a hedge if the expected spot rate in 6 months is 08.14/5? 07.22/52 06.40/S? b. How much in U.S. dollars will Farah Jeans pay in 6 months with a forward market hedge? c. How much in U.S. dollars will Farah Jeans pay in 6 months with a money market hedge? d. Which method would you select and why?