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COMMUNICATION CASE-FORWARD CONTRACTS AND OPTIONS CPA. Palmetto Bug Exdermination Copporation (PBEC), a U S compary, regulanty purctases chemicats from a suppler in Switzeriand with the inwoice price denominated in Swiss trancs PBEC has experiencad several foreign exchange losses in the past year due to inceasos in the US dallar poice of the Swist cuirency As a result. Dowey Nukem, PBEC's CEO, has asked you to investigate the possiblility of using derivative finandial instruments, upecifically foreign curtency forward contracts and loreign currency options, to hedge the company's exposure to foreign exchange risk. Required Draft a memo to CEO Nukem comparing the advantages and disadvantagos of using forward contracts and optlons to hodge foreign exchange risk. Recomnend the type of hedging instrument you beleve the company should employ, and justify your iecommendation