Please do everything as per Chegg guidelines do all four parts. Thank you for being great. Do not copy and paste from Chegg as those answers are wrong. Please just put the answers. You are the best.

Part 1.

All the following FX products would be appropriate for hedging a transaction when the required future cash flows are certain EXCEPT:

Cross-currency FX swaps

FX options

FX swaps

FX forwards

Part 2.

Client C based in Europe entered into a put option contract to hedge a contract of USD $2.15MM due in six months. Suppose six months later, EUR/USD drops to 1.0680. Using the provided information, determine whether the party should exercise the option and calculate the total cost.

EUR/USD spot rate today	1.0750
Cost of EUR/USD FX option contract	50,000
6-Month OTM put option (strike @ 1.0700)	0.0080

Do not exercise the option; total cost = 2,029,109

Exercise the option; total cost = 2,009,346

Exercise the option; total cost = 2,025,346

Do not exercise the option; total cost = 2,013,109

Part 3

Match the descriptions to the appropriate terminology for non-deliverable forwards (NDFs).

a. Notional Amount

b. Fixing Date

c. Settle Date

d. Contracted NDF Rate

Face value of the NDF in the non-deliverable currency

The forward FX rate agreed upon the transaction date

The date where the NDF rate will be compared with the spot rate

The date when the difference between the spot rate and NDF rate is paid out in cash

Part 4.

Which of the following currencies is not included in the basket of currencies which the value of the special drawing rights (SDRs) is based on?

CNY

JPY

EUR

CHF

Thank you so much