Lets consider the example of Viner Co. in this weeks lecture. Please provide steps and analysis associated with your answers to the questions below.

1. If the forward rate is CHF/USD = 0.72 now, how much will Viner receive in dollars in 6 months according to the forward hedging?
2. Assume now the 6-month U.S. interest rate is 4% and the 6-month euro interest rate is 4.5%. Suppose now the current spot rate is CHF/USD = 0.73. How much will Viner receive in dollars in 6 months according to the money market hedging?
3. Assume now the put option has an exercise price of CHF/USD = 0.74 with a premium of $0.04. If the prediction of the spot rate in a year is as shown in the table below, how much will Viner receive in dollars in 6 months according to the option hedging?
4. Which hedging technique is optimal for Viner Co. now?
5. Should Viner Co. use the optimal hedging technique to hedge payables?

Scenario	The spot rate in a year	Probability
1	0.71	60%
2	0.75	40%