You source Ice Cubes to sell in the US from an Eskimo village and you owe them DKK 3,000,000 which is due in 60 days. Greenland is part of Denmark and uses Danish Krona (DKK) as its currency. If the Currency exchange rates and interest rates are a as follows what is your hedging decision? Data Table Amount (to be paid in DKK) DKK3,000,000 Days 60 Spot DKK5.7200/$ Forward premium or discount (calculate) DKK is sold at Premium of 2% DKK is sold at Premium of 1.50% Expected change in FX rate (calculate) Identify what kind of Option should be used 1% Premium - CALL Option Premium - PUT Option 2% CALL Strike Price DKK5.7500/$ DKK5.7500/$ PUT Strike Price Identify which rate should be used US borrowing AND investing 5% and 3% respectivelly 6% and 4% respectively 10% Danish borrowing AND investing Cost of Capital (WACC) Using data in the table above, you need to calculate proceeds of different hedging alternatives. Question 1 1 pts Remain Unhedged (1) Compute the expected FX rate of DKK/$ in 60 days. Question 2 1 pts Remain Unhedged (2) How much will you have to pay in USD, if you choose to Remain Unhedged