Please provide solutions to the following problems. Thanks!

8. A US company has land in Acapulco that will likely be sold in the next year. There are two possible states of the world. With a probability 50% the exchange rate will be $0.3400/P. In this case the land will be worth P 300,000. With a probability 50% the exhange rate will be $0.3740/P and the land will be worth P 266,667. How would you use financial hedging to hedge this exposure? (a) Buy P 66,676 forward (b) Buy P 300,000 forward (c) Sell P 266,667 forward (d) Sell P 65,343 forward (e) None of the above 9. The table below presents the correlation coefficient between the returns of Company A's stock, its local stock market and the world portifolio. What is company A's cost of capital if markets were fully integrated? The risk free rate is 3.67%. Company A Local Market World Correlation Coefficients (0) Company A Local Market World SD%) R(%) 1.00 0.91 0.66 17.84 ? 1.00 0.6913.02 15.09 1.00 9.50 11.02 (a) 12.78% (b) 17.95% (c) 83.50% (d) 54.75% (e) None of the above