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A US company has land in Paris that will likely be sold in the next year. There are two possible states of the world.

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A US company has land in Paris that will likely be sold in the next year. There are two possible states of the world. With a probability 20% the exchange rate will be $1.5833/. In this case, the land will be worth 4,800,000. With a probability 80% the exchange rate will be $1.6466/eand the land will be worth 4,586,667. How would you use financial hedging to hedge this exposure? O Buy 749,352 forward Buy 4,800,000 forward O Sell 4,586,667 forward O Sell 734,365 forward

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