weaken against the dollar in the coming 90 to 120 days, possibly to around $1.1614/. a. Evaluate the hedging alternatives for Chronos if Manny is right (Case 1: \$1.1614/) and if Manny is wrong (Case 2: \$1.2639/). What do you recommend? b. What does it mean to hedge 120% of a transaction exposure? c. What would be considered the most conservative transaction exposure management policy by a firm? How does Chronos compare? a. Case 1: Manny is right and the spot rate in 90 days is $1.1614/. How much in U.S. dollars will Chronos receive in 90 days if 100% of the transaction exposure is hedged with the forward contract? (Round to the nearest dollar.)