Please answer all parts (a,b,c)

1.) Suppose a firm will receive 15,000,000 in 180 days.

a. [2 pts] If the forward rate is 0.143$/ , what would be the value of receivables using the forward?

b. [4 pts] Suppose the dollar-renminbi exchange rate is uncertain. It could be:

0.13$/ with 12% probability

0.11$/ with 51% probability, or

0.17$/ with 37% probability.

What is the expected receivable with the expected exchange rate? Should the firm use the forward or take the risk?

c. [5 pts] If an option existed with a strike price of 0.16$/ and a premium of 0.02$/ , should the firm use the option, the forward, or neither?