Assume that Chicken Inc. expects to receive S$1,000,000 in one year.

The existing spot rate of the Singapore dollar is $.60. The one‑year forward rate of the Singapore dollar is $.63. Chicken Inc. created a probability distribution for the future spot rate in one year as follows:

                         Future Spot Rate                                      Probability
                                    $.59                                                     20%
                                    .63                                                       50
                                    .67                                                       30

Given this information, determine whether a forward hedge or an unhedged strategy is best for Chicken Inc. Show your calculations for a forward hedge and the expected amount if Chicken Inc does not hedge and discuss which is the better option and why.