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A U . S . firm has an obligation to pay BRL 7 million in one year. The current spot rate USDBRL is 3 .
A US firm has an obligation to pay BRL million in one year. The current spot rate USDBRL is the money market rate in the US is while the money market rate in Brazil is In order to hedge this FX exposure with a money market hedge, how much money should the US firm borrow in Brazilian reais such that it can meet its obligation in one year.
Note: round your answer to the nearest Brazilian real. For example, if you calculated answer is enter it as:
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