Please help me, tks so much!!!

International Financial Management

ASC, based in the US, specializes in exporting seafood to the Japanese market and receives payments in Japanese yen (JPY) every month. ASC's CFO predicts that the Japanese yen (JPY) will depreciate over time against the US dollar (USD). 1. In your opinion, how can ASC use currency options contracts to hedge against exchange rate risk? Does the use of the options contract guarantee the ASC company to sell all the Japanese yen received in a month at a specified rate? 2. John Smith, the owner of ASC Company, is concerned that the Japanese yen could depreciate significantly in the next month, but he also believes that the Japanese yen can appreciate significantly if certain specific situations arise. In your opinion, should John use currency options, forwards or futures contracts to hedge against exchange rate risk? If using this tool to hedge exchange rate risk, what disadvantages might the company face