Please help me answer this! Thanks!

Bridgestone, a Japanese-based company, receives recurring income in USD of about

USD 5 billion per year. The current exchange rate is 120/USD. The interest rates in

Yen and USD are respectively 0.5% and 3.5%, leading to a forward price of

116.52/USD. Bridgestone works in a low-margin industry.

1.Hedge next year's exposure using a simple option contract. Be clear on ALL the

details.

Make a graph of unhedged windfall, the option's payoff, and the hedged

windfall.