year . Keep in mind that NSU must pay MU the price ( in IN . I. ) agreed upon in August 2002 .` . Students will pay the " advertised price " to NSU in $U. S . The cost to NSU in $U . S . will be based upon the exchange rate in September 20 03 . 3 . Develop three alternatives For hedging the exchange rate risk , and discuss the relative strengths and weaknesses Of each . Specifically set up !` a . A Forward contract hedge .` The Forward exchange rates , entered in January For delivery in September , are given in Appendix A . i . Which party INSU or the student ) should bear the cost Of this hedge ?* Do . A money market hedge . The annual interest rates for money deposited or invested in each country are given in Appendix A. i . Where will NSU obtain the Funds to be deposited ?" C . An option hedge .\ Information For both calls and puts are given in Appendix A. The premiums presented are the cost ( in IN . Z. ; as a percentage of the amount of IN . Z. to be hedged . 4 . AS explained earlier , the number of study abroad students who will be attending is not known on the date the price is