Need help with Part B and Part C$.$

Assume that today is March 7 and, as a member of the options desk at Morgan Stanley, you must advise a client on the costs and benefits of hedging a transaction with options. Your client (a small U.S. importing firm) is scheduled to make a payment of 7,550,000 on May 12, 66 days in the future. Assume that your client can borrow and lend at a 5% p.a. U.S. interest rate. a. b. c. Describe the nature of your client's transaction exchange risk. Use the appropriate American option with a May maturity and a strike price of 109