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Assume you are the CFO of AIFS. Your analyst reports thefollowing information (Use the following information for theremainder of the assignment):Current exchange rate is $1.16/€.Forward rate is $1.185/€.Expected final sales volume is 30,000. Worst case scenario isvolume of 10,000. Bestcase scenario is volume of 36,000.Cost per student is €2500.Option premium is 2% of USD strike price.Option strike price is $1.165/€.6. As the CFO, you decided to hedge using forward contracts.Assume that the expected final sales volume is 30,000. What areyour total benefit/cost and the percentage benefit/cost fromhedging (compared to no hedging)a) if the exchange rate remains at $1.16/€? b) if the exchangerate will be $1.25/€?c) if the exchange rate will be $1.08/€?7. As the CFO, you decided to hedge using option contracts.Assuming expected final sales volume is 30,000, what are your totalbenefit/cost and the percentage benefit/cost from hedging (comparedto no hedging)a) if the exchange rate remains at $1.16/€?b) if the exchange rate will be $1.25/€?c) if the exchange rate will be $1.08/€?8. What is the most profitable strategy for the case in whichthe expected final sales volume is 30,000 (no hedge, forwardcontract, or option contract)a) if the exchange rate remains at $1.16/€? b) if the exchangerate will be $1.25/€?c) if the exchange rate will be $1.08/€?d) Is there a best strategy? Why?