16. Intel is scheduled to receive a payment of 100,000,000 in 90 days from Sony in...

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16. Intel is scheduled to receive a payment of 100,000,000 in 90 days from Sony in connection with a shipment of computer chips that Sony is purchasing from the Intel. Suppose that the current spot exchange rate is 103/$, and 90-day forward exchange rate is 101/$. (a) Suppose the financial manager of Intel is considering to hedge the foreign exchange rate risk with the forward contract, how could he/she do? (b) Suppose, in 90 days, the spot exchange rate turns out to be 102/$, how much is the Intel's gain or loss in terms of U.S. dollars in the hedging strategy as opposed to the unhedged strategy? According to a specialist's forecast, the future spot exchange rate in 90 days is going to be 104/$. (c) Suppose Intel's financial controller totally agrees with this specialist's forecast, would he choose to hedge or not hedge? Please also calculate the financial controller's expected receipt from Sony in terms of US dollars in both strategies, based on this forecast. 16. Intel is scheduled to receive a payment of 100,000,000 in 90 days from Sony in connection with a shipment of computer chips that Sony is purchasing from the Intel. Suppose that the current spot exchange rate is 103/$, and 90-day forward exchange rate is 101/$. (a) Suppose the financial manager of Intel is considering to hedge the foreign exchange rate risk with the forward contract, how could he/she do? (b) Suppose, in 90 days, the spot exchange rate turns out to be 102/$, how much is the Intel's gain or loss in terms of U.S. dollars in the hedging strategy as opposed to the unhedged strategy? According to a specialist's forecast, the future spot exchange rate in 90 days is going to be 104/$. (c) Suppose Intel's financial controller totally agrees with this specialist's forecast, would he choose to hedge or not hedge? Please also calculate the financial controller's expected receipt from Sony in terms of US dollars in both strategies, based on this forecast.