Krystal. Krystal is a U.S.-based company that manufactures, sells, and instals water punification equipment. On April 11 , the company sold a system to the City of Nagasaki, Japan, for installation in Nagasakis famous Glover Gardens (where Puccinfs Madame Buaterfy waited for the return of Lt, Pinkerion). The saie was price in yen at 126,000,000, with payment due in three months. The exchange fate and interest rade data are shown in the popup window: Note that the interest rate difierentials vary slightly from the forward discounts on the yen because of time differences for the quctes. The spot 118.360/S. for example, is a mid-point range. On April 11, the spot yen traded in London from K119.388/\$ to 1117.332/5. Krystars Japanese competitorb are currendy borrowing yen from Japanese banks at a spread of two percentage peints above the Japanese money rate. Krystal's weighted average cost of capital is 15%, and the compan wishes to protect the dollar value of this receivable. 3.fnonth ogsons are avaliable from Kyushu Bank cal option on 26.000.000 at exercise price of 118.0005: a 1.1% premium: or a put option on V26,000,000, at exercise price of k118 000is? a 3.1% premium. a. What are the costs and benefits of alternative hedges? Which would you recommend, and why? b. What is the breakieven reinvestrent rale when oomparing forward and meney market alternatives? (Round to the nearest cent.) How much in US. doliars will Krystal receve in 3 months with a forward market hedge? (Round to the nearest cent,) How much in U.S. dollars will Kryetal receive in 3 months with a money market hedgo? 3 (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) (Click on the following icon in order to copy its contents into a spreadsheet.)