Urhedged Prof You are a broker for frozen seafood products for Chayce Products You just signed a deal with a Belgian dotibutor Under the term of the contract, in one year you will deliver 400 grams of thing for 3 Your cost for obtaining the king crab is $110,000. Al cash flows occur in exactly one year a. Plot your profits in one year bom the contract as a function of the exchange cafe in o year, for exchange rates om D b. Suppose the one-year forward exchange rate is 51 25/C and that you enter inte a forward contract to set the Euros y the forward he exchange rate in one year Label this Ine Torward Hedg Suppose contract, you consider using options A one-year calc of $1.25/Cs wading for $0.10/C To bodge the risk of your profts, should you buy sr ssl the calc d. In the figure from parts (a) and (b) plot your "all in" profts using the option hedge (combined profts of crab contract, option contact ant apton prej na hunian of the change rate in one year Label Hedge (Note You can ignore the effect of interest on the option price) e. Suppose that by the end of the year, a trade war erupts, leading to a European embargo on b However, you stil have the profits for losses) associated with your forward or options contract in cancellation, which type of hedge has the least downside risk? Explain booty a "Opon food products As a resut, you deal cancelled, and you don't receive the Eass or nor the ads if song the ca new pure plot the profits associated with the forward hodge and the spans hedge (labeling each in) When there is a risk of