Can anyone help solve the following questions?

(20 points) Let's consider a ctitious country Frankenstan, where a UK rm has just set up a sul'Bidiary. In the next period, assume that the subsidiary's cashow (CF), in terms of the Frankenstan currency (FRK), can take of the two possible values, 70% chances FRK 150 or 30% chances FRK 101], depending on whether the Hankenstan economy is booming or in a recession. Let there also be two possible next period spot rate, GBPXFRK 1.2 (28.571496 chances if the economy is in boom, 55.555?% chances if the economy is in recession) and 0.?5 (71.428596: chances if the economy is in boom and 33.3333% chances if the economy is in recemion). For simplicity, just assume the forward rate is 1.0GBPXFRK. (a) To hedge against exchange rate exposure, the UK parent should buy or sell how much forward for the next maturity? [5 points) (b) What is the expected cashow when next period spot rate is high? When next period spot rate is low? Can the forward contract do a good job hedging exchange rate movement? (5 points) (c) How many forward should the parent buy or sell to ensure that the expected cashow is the same when the economy is either in boom or in recession? (5 points) (d) If you hedge so, what is the expected cashow when the economy is in boom? When in recession? Can the forward contract do a good job hedging the economy uncertainty? (5 points)