You receive a research grant from a Swiss company to conduct research on the impact of Covid 19 on corporate funding structure. The grant is worth SF25,000, and is going to be transferred in 6 months to your university account. You observe the following data from the financial press Spot exchange rate (AUD/SF) 0.6577 Six-month forward rate (AUD/SF) 0.6875 Six-month call option strike price (AUD/SF) 0.6870 Six-month call option premium (AUD/SF) 0.0250 Six-month put option strike price (AUD/SF) 0.6880 Six-month put option strike price (AUD/SF) 0.0350 Six-month interest rate (AUS), p.a 6% Six-month interest rate (SW), p.a 5% Assume that your expected future spot exchange rate is the same as the forward rate. (a) If you choose to hedge this foreign account receivable using options, explain which option you would choose. Compute the AUD proceeds of the option hedge. (5 MARKS) (b) If you choose to hedge this account receivable using forwards, compute the AUD proceeds of the forward hedge (3 MARKS) (c) At what future spot exchange rate will you be indifferent between the forward and option market hedges? (3 MARKS) (d) Draw a diagram to illustrate the AUD proceeds of hedging this account receivable under the option and forward hedges. Fully label your diagram (4 MARKS)