Please consider the following information for the next 5 questions. Caterpillar, Inc. (U.S. based MNC) will receive 1,123,500 euros in one year. The spot exchange rate today is $1.0800 per euro. It observes that 1. The one-year interest rate for euros is 7.00%, and the one-year interest rate for U.S. dollars is 5.50%. 2. In the option market, there is one-year call option or put option available. Both options have the same exercise price of $1.0600 per euro, and a premium of $0.015 per euro. 3. In the forward market, the one-year forward rate exhibits a 2.50% discount from the current spot exchange rate. How should Caterpillar utilize the forward market to hedge the exchange rate risk for its future receivables? And what shall be the amount received based on this hedging strategy? (Note: Caterpillar can only buy or sell the forward contract at the forward rate available in the forward market described in bullet 3. ) Sell a one-year forward contract for the amount of 1,123,500 euros at the forward rate of $1.0530. One year later, Caterpillar will fulfill its obligation and receive the amount of $1,183,045.50. Sell a one-year forward contract for the amount of 1,123,500 euros at the forward rate of $1.1070. One year later, Caterpillar will fulfill its obligation and receive the amount of $1,243,714.50. Buy a one-year forward contract for the amount of 1,123,500 euros at the forward rate of $1.1070. One year later, Caterpillar will fulfill its obligation and receive the amount of $1,243,714.50. Buy a one-year forward contract for the amount of 1,123,500 euros at the forward rate of $1.0530. One year later, Caterpillar will fulfill its obligation and receive the amount of $1,183,045.50. If Caterpillar decides to use money market hedging strategy. to hedge its receivables, how shall Caterpillar implement the strategy? Caterpillar should first borrow euros for the amount of 1,050,000.00 euros. Caterpillar will then go to the foreign exchange market to exchange the amount borrowed into U.S. dollars which yields Caterpillar the amount of $1,134,000.00. Caterpillar will deposit the amount exchanged at the bank in the U.S.. One year later, Caterpillar will pay off its euros loan by using the euro payments received. Caterpillar should first borrow U.S. dollars for the amount of $921,537.65. Caterpillar will then go to the foreign exchange market to exchange the amount borrowed into euros which yields Caterpillar the amount of 995,260.66 euros. Caterpillar will deposit the amount exchanged at the bank in the Europe. One year later, Caterpillar will pay off its U.S. dollar loan using the euro payments received. Caterpillar should first borrow euros for the amount of 1,123,500.00 euros. Caterpillar will then go to the foreign exchange market to exchange the amount borrowed into U.S. dollars which yields Caterpillar the amount of $1,213,380.00. Caterpillar will deposit the amount exchanged at the bank in the U.S.. One year later, Caterpillar will pay off its euro loan using the euro payments received. How many U.S. dollars will Caterpillar end up receiving for its 1,123,500 euro receivable by using money market hedge? $1,064,928.91:$1,280,115.90$1,196,370.00$1,202,145.00 If Caterpillar decides to use options contracts to hedge its receivables, Caterpillar shall Buy one-year put options of 1,123,500 euros with the exercise price $1.0600 per euro. Buy one-year call options of 1,123,500 euros with the exercise price $1.0600 per euro. Sell one-year put options of 1,123,500 euros with the exercise price $1.0600 per euro. What are the expected U.S. dollars Caterpillar ends up receiving for its 1,123,500 euro receivable based on its exchange rate forecasting given below? $1,219,559.25.$1,197,651.00.$1,163,946.00.$1,185,854.25