Scenario: Primetime Systems, Inc. now has total worldwide revenues of over $820 million forecast for this coming year.

Scenario:Primetime Systems, Inc. now has total worldwide revenues of over $820 million forecast for this coming year. You have operations in the United States of $450 million with a 12% ROS (return on sales), operations in Germany of 200 million with an a return on sales (ROS) of 11%, and operations in Shanghai, China, of 990 million yuan with an ROS of 9%.You expect to repatriate all the ROS to the U.S. when available in 12 months. Assignment1. Determine the spot and 12-month forward exchange rates and determine any change in the ROS repatriated in 12 months based on exchange rates versus the current forecast. 2.  Describe the repatriation using a spot transaction, an outright forward, and a foreign-exchange swamp. 3.  Would there be any use or benefit in using a currency option or currency swaption? 4.  Describe each. 5.  How would you advise the company to handle the repatriation?6.  Please cite all references