Use the following intormation to answer questions 1.5 Dayten Manufacturing's Transaction Exposure Scout Finch is the CFO of Dayton, a US based manufactirer of gas turbine equipment. She has just conckided negotiations for the sale of a turbine generator to Crown, a Eritish firmi, for E1 million. This single sale is quite lame in relation to Dayton's present business. so the currency risk of this sale if of particular concern. The sale is made in March with payment due three months later in June. Scout has collected the following firsncial information: - Spot rate:1.74 5/f - 3 month forwand rate 1.7545/E - UK 2 -month borrowing rate: 100 a year. - UX3-month lending rate ass a vear. - US 3 month borrowing rate BX a yoar. - US 3 manth inneling rate tw a var. - June nut option for C1mi Striae 51.75, premium 1.5\%: - Note that the interest rates given are in annual terms but payment is due in thee months. Dayton's advisony service forecasts that the spot rate in 3 months will be 1.76$1f. Calculate the dellar value of the unhedged position/recelvable in three months assuming that the Spot rate in 3 months is $1.76. Explain your calcidabans oin vour notest