Microsystems prefers to receive U$.$S$.$ dollars rather than euros for the trade transaction. It is considering two$$ alternatives: $1)$ sell the acceptance for euros at once and convert the euros immediately to U$.$S$.$ dollars at the spot rate of exchange of

$ $1\mathrm{.}01$ divided by euro$$1\mathrm{.}01/$

or$2)$ hold the euro acceptance until maturity but at the start sell the expected euro proceeds forward for dollars at the

$33-$month

forward rate of

$ $1\mathrm{.}03$ divided by euro$$1\mathrm{.}03/.$

a$.$ What are the U$.$S$.$ dollar net proceeds received at once from the discounted trade acceptance in alternative$1?$

b$.$ What are the U$.$S$.$ dollar net proceeds received in

threethree

months in alternative$2?$

c$.$ What is the$$ break$-$even investment rate that would equalize the net U$.$S$.$ dollar proceeds from both$$ alternatives?

d$.$ Which alternative should Nikken Microsystems$$ choose?

$($NOTE: Assume a$360-$day year.$)$