2. Res este Det Timise Dr 3.2. 1 2 3 1. 8 9101112131415 Chronos Time Pieces of Boston exports wrist watches to many countries, selling in local currencies to watch stores and distributors. It has issued a 90-day invoice to its buyer for 1,560,000. The current spot rate is $1.2224/, the 90-day forward rate is $1.2270/. Chronos's treasurer, Manny Hernandez, has a very good track record in predicting exchange rate movements. He currently believes the euro will weaken against the dollar in the coming 90 days, possibly to around $1.16/. The 3-month euro interest rate is 3.88% per annum, the 3-month US dollar rate is 4.8% per annum. Chronos Time Pieces of Boston can invest at these interest rates, or borrow at 1% per annum above those rates. A 3-month call option on euro with a $1.21/ strike rate has a 0.5% premium, while the 3-month put option at the same strike rate has a 0.9% premium. Assume that 3-month later spot exchange rate will be is $1.23/. If weighted average cost of capital is 8%, compare alternate ways that Chronos Time Pieces of Boston might deal with its foreign exchange exposure. What do you recommend and why