Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client

Question:

Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client a choice of paying either $10,000 or SF 15,000 in three months.
a. In the example, Baltimore Machinery effectively gave the Swiss client a free option to buy up to $10,000 using Swiss francs. What is the "implied" exercise If the spot turns out to be $0.62/SF, which currency do you think the Swiss client will choose to use for payment? What is the value of this free option for the Swiss client?
c. What is the best way for Baltimore Machinery to deal with exchange exposure?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...