A company just exported a plane to Spain and its payment of 10millions is due in 1 year. The information the company has from the financial markets is the following:

Spot $/ (bid - ask)

1.3 - 1.5

1 year Forward $/ (bid -ask)

1.2 - 1.4

Spot / (bid - ask)

1.02 - 1.04

1 year Forward / (bid - ask)

1.25 - 1.30

1 year Interest Rate in $

2%

1 year interest rate in

4%

Knowing that there is no possibility to invest in (i.e. you can use only for swap), list and evaluate all the risk-hedging alternatives the company has in order to maximize its revenue in 1 year.Clearly describe all the steps.What would you choose to do?