. Based on the information in the table below, what is the proper financial hedging strategy with forwards?(10 points)

State

Probability

State

Probability

P*

S

1

1/3

900

$1.35/

2

1/3

1,000

$1.50/

3

1/3

1,100

$1.65/

We sell _________ forward at the 1-year forward rate of ________

a.$ net cash flow when the French assets is worth 900, and the exchange rate is $1.35/ (2 points)

b.$ net cash flow when the French assets is worth 1,000, and the exchange rate is $1.50/ (2 points)

c.$ net cash flow when the French assets is worth 1,100, and the exchange rate is $1.65/ (2 points)