1.If six-month domestic interest rate is 6% while 6-month foreign interest rate is 2%. What would be the hedging cost of an exporter with foreign currency receivables in six months?

A.The exporter will pay 4% interest

B.The exporter will pay 6% interest

C.The exporter will receive 4% interest

D.The exporter will receive 6% interest

E.None of the above