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A U.S. firm has an obligation to pay BRL 8 million in one year. The current spot rate USDBRL is 3.0977, the money market rate

A U.S. firm has an obligation to pay BRL 8 million in one year. The current spot rate USDBRL is 3.0977, the money market rate in the U.S. is 1.5% while the money market rate in Brazil is 7.67%. In order to hedge this FX exposure with a money market hedge, how much money should the U.S. firm borrow in Brazilian reais such that it can meet its obligation in one year.

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