10. Hedging Project Risk. Your firm has just tendered for a contract in Japan. You won't know for 3 months whether you get the contract but if you do, you will receive a payment of 10 million 1 year from now. You are worried that if the yen declines in value, the dollar value of this pay- ment will be less than you expect and the project could even show a loss. Discuss the possible ways that you could protect the firm against a decline in the value of the yen. Illustrate the pos- sible outcomes if you do get the contract and if you don't. (LO2)