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An American based company expects to receive a one-time payment of 525 million Brazilian Reais in approximately 6 months, and they would like to hedge

An American based company expects to receive a one-time payment of 525 million Brazilian Reais in approximately 6 months,

and they would like to hedge against the risk that exchange rates may change during those 6 months.

Explain the hedging strategy that the American company should take in this case.

(Note: It is possible that the company should not be hedging at all.)

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