Need Part A, B, and C

Chronos Time Pieces. Chronos Time Pieces of Boston exports watches to many countries, seling in local currencies to stores and distributors Chronos prides itself on being financially conservative. At least 70% of each individual transaction exposure is hedged, mostly in the forward market, but occasionaly with options Chronos' forelgn exchange policy is such that the 70% hedge may be increasod up to a 120% hedge if devaluation or depreciation appears imminent. Chronos has just shipped to its major North American distributor It has issued a 90-day invoice to its buyer for 1.560.000. The current spot rate is $1.2225/,the90-day forward rate is $1.227916. Chronos' treasurer, Manty Hernandez, has a very good track record in predicting exchange rate movements. He currenty belleves the euro will weaken against the dollar in the coming 90 to 120 days, possibly to around $1.1592/ : a. Evaluate the hedging altematives for Chronos if Maney is tight (Case 1.$1.1592C ) and if Manny is wrong (Case 2. \$1.2671 I $ ). What do you tecorrmend? b. What does it mean to hedge 120% of a transaction exposure? c. What would be considered the most conservalive transaction exposure nlanagement polcy by a firm? How does Chronos compare? a. Case 1. Manny is right and the spot rate in 90 days is $1.15921 e How much in US, dollars will Chronos recelve in 90 days if 100% of the transaction exposure is hedged with the forward contract? (Round to the neatest dollar)