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(6) (2 points) A Japanese EXPORTER has a 1,000,000 receivable due in one vear. Detail a strategy (i.e, provide step-by-step explanations and calculations) using a

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(6) (2 points) A Japanese EXPORTER has a 1,000,000 receivable due in one vear. Detail a strategy (i.e, provide step-by-step explanations and calculations) using a money market hedge that that will eliminate any exchange rate risk. 1-year rates of interest Dollar Euro yen Spot exchange rates 1-year Forward Rates $1.25 1.00 Borroving 4.5 6.009 1.00. o lending 4.00 5.25 0.750o $1.2262 1.00

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