Question $1[10$ Marks$]$ Manala Co $($a US firm$)$ expects to receive $1$ million euros in $1$ year. The spot rate of the euro is $$1\mathrm{.}20.$ The $1-$year forward rate of the euro is $$1\mathrm{.}21.$ Manala expects the spot rate of the euro to be $$1\mathrm{.}22$ in $1$ year. Assume that $1-$year put options on euros are available, with an exercise price of $$1\mathrm{.}23$ and a premium of $$0\mathrm{.}04$ per unit. Also assume the following money market rates:

$($a$)$ Determine the dollar cash flows to be received if Manala uses a money market hedge. $($Assume Manala does not have any cash on hand.$)(5)$

$($b$)$ Determine the dollar cash flows to be received if Manala uses a put option hedge

United States Eurozone Deposit Rate $8\%5\%$ Borrowing Rate $9\%6\%$