Gransh 9. Forward hedge Please refer to Table 3 in the datafile. To hedge exposure from a receivable of 1min EUR due in 3 months, Ganado could enter into a forward position, thus fixing an effective exchange rate of EUR/USD a) long; 1.1919 b) short; 1.1919 C) short; 1.1911 d) long; 1.1911 Ganado is a US company interested in hedging currency risk from its European business. You observe the following information related to hedging transaction exposure. ask bid 1,1823 EUR/USD spot 1,1829 Cost of capital (p.a.) 12% Forward market EUR/USD 3-month premium/discount 90 Money market US 3-month borrowing rate (p.a.) 3-month deposit rate (p.a.) Eurozone 10% 8% Options market call Maturity Premium EUR/USD strike 3 months 1,25% 1,1850 put 3 months 1,15% 1,1815