Consider the three base cases in Exhibit 9: 100% hedging with options, 100% hedging with forward contracts, and no hedging at all. In a first step, assume the actual sales volume is known and always equals the forecasted volume of 25,000 students. How are profits affected under each of the three base cases relative to expected outcomes (based on an expected spot rate of USD/EUR 1.22)

Select the correct answer. ramon applied to the state university in the city where he lives, but he was denied admission. what should he do now? a.change his mind about graduating and drop out of high school so he can start working right away. b. decide not to go to college, because he didn’t have a backup plan. c.stay positive and write a mean letter to let the college know that they made a bad decision. d. learn from this opportunity, reevaluate his options, and apply to his second and third choices.