Question 7 (6.25 points) How many U.S. dollars will UCD end up receiving for its 250,000 euro receivable by using money market hedge? $285,000.00. $300,000.00 $286,111.11. $238.425.93Question 8 (6.25 points) If UCD decides to use options contracts to hedge its receivables, UCD shall Buy one-year call options of 250,000 euros with the exercise price $1.18 per euro: )Sell one-year put options of 250,000 euros with the exercise price $1.18 per euro: O Buy one-year put options of 250.000 euros with the exercise price $1. 18 per euro.Question 9 (6.25 points) What are the expected U.S. dollars UCD ends up receiving for its 250,000 euro receivable based on its exchange rate forecasting given below? Scenario Spot Exchange Rate One Year Later Probability $1.14 15 % $1.17 60% $1.20 25% $296,250.00 $292,500.00 $293.250.00 $291.250.00Question 10 (6.25 points) Which hedging strategy, forward hedge, money market hedge, and options hedge, will you suggest UCD to choose based on your calculation? Options hedge. Forward hedge. Money market hedge.Question 11 (6.25 points) Now suppose that one year later, the spot exchange rate is $1.1? per euro. What is your real cost hedging if the options hedging strategy is chosen? O-$5,000 O-$7.500 -$2.500Question 12 (6.25 points) What shall be the forward rate that makes the money market hedge indifferent from the forward contract hedge? Rounded to four decimal places. $1.1444/euro $1.2583/euro $1.1400/euro $1.2600/curoQuestion 5 (6.25 points) Saved How should UCD utilize the forward market to hedge the exchange rate risk for its future receivables? And what shall be the amount received based on this hedging strategy? (Note: UCD can only buy or sell the forward contract at the forward rate available in the forward market described in bullet 3.) O Sell a one-year forward contract for the amount of 250,000 euros at the forward rate of $1.20. One year later, UCD will fulfill it's obligation and receives the amount of $300,000. )Buy a one-year forward contract for the amount of 250,000 euros at the forward rate of $1.20. One year later. UCD will fulfill its obligation and receives the amount of $300.000 Buy a one year forward contract for the amount of 2501000 puros at the forward rate of $1.14. One year later. UCD will fulfill its obligation and receives the amount of $285,000 Sell a one year forward contract for the amount of 250:000 quiros at the forward ate of 91.14. One year later. UCD will fulfill its shitation and recgives the amount of 9285.000 Question 6 4912 5 points 12 pgQuestion 6 (6.25 points) If UCD decides to use money market hedging strategy to hedge its receivables, how shall UCD implement the strategy? UCD should first borrow U.S. dollars for the amount of 300 000. UCD will then go to the foreign exchange market to exchange the amount borrowed into euros which yields UCD the amount of 250,000 euros. UCD will deposit the amount exchanged at the bank in Europe. One year later, UCD will pay off its U.S. dollar loan by using the euro payments received. UCD should first borrow euros for the amount of 231,481.48 euros UCD will then go to the foreign exchange market to exchange the amount borrowed into U.S. dollars which yields UCD the amount of $277.777 78. UCD will deposit the amount exchanged at the bank in the U.S.. One year later, UCD will pay off its euro loan using the curo payments received. ()UCD should first borrow U.S. dollars for the amount of 231/181 48. UCD will then go to the foreign exchange market to exchange the amount borrowed into curos which yields UCD the amount of 250,000 cures. UCD will deposit the amount exchanged at the bank in Europe. One year later! UCD will pay off its U.S. dollar loan by using the euro payments received, UCD should first borrow euros for the amount of 250,000 cuios. UCD will then i to the foreign exchange market to exchange the amount borrowed intallisit dollars "high yields UCD the amount of $300 009: UCD will deposit the amount; Exchanged at the bank in the U S. One year