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A US company has land in Acapulco that will likely be sold in the next year. There are two possible states of the world. With
A US company has land in Acapulco that will likely be sold in the next year. There are two possible states of the world. With a probability the exchange rate will be$ P In this case the land will be worth P With a probability the exchange rate will be $ P and the land will be worth P How would you use financial hedging to hedge this exposure?
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