1. Suppose your company just exported 1 million dollars goods to USA on 15 December 2016, the spot exchange rate is 6.9 RMB/$. The US importer promise to pay the 1 million dollars in one year (15 December 2017). Your boss is a risk- adverse person, who does not want to take any exchange risk of RMB appreciation. He want to use the forward contract to hedge the exchange risk, but unfortunately there is no forward in your market. How can you use monetary market to help your boss avoid exchange risk. Suppose the interest rate of RMB is 6%, and interest rate of US dollar is 4%.