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

A US company has land in Zurich that will likely be sold in the next year. There are
two possible states of the world. With a probability 35% the exchange rate will be
$1.3333SFr. In this case the land will be worth SFr3,000,000. With a probability
65% the exhange rate will be $1.4133SFr and the land will be worth SFr2,800,000.
How would you use fin ancial hedging to hedge this exposure?
(a) Buy SFr 533,250 forward
(b) Buy SFr 3,000,000 forward
(c) Sell SFr 2,800,000 forward
(d) Sell SFr 522,585 forward
(e) None of the above
THE CORRECT ANSWER IS (A) BUY SFR 533,250 FORWARD. NEED HELP WITH MATH
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