An Australian exporter WA Co. will receive 5.82 million Chinese yuan (CNY) from a Chinese importer Sing Tao in one year. WA Co. analyses the different hedging strategies (forward, money market and options) using the market information in the following Table 1 to minimise its exchange rate risk for the Australian dollar (A$) cash flow. TABLE 1 For Chinese yuan (CNY) Spot rate A$0.4965/CNY Calculate the A$ proceeds from the forward hedging strategy based on the information in Table 1. One-year forward rate A$0.5798/CNY enter the whole number without sign and symbol). One-year CNY deposit and borrowing rate 7.20% One-year call options Exercise price = A$0.61 Premium = A$0.03 One-year put options Exercise price = A$0.57 Answer: Premium = A$0.05 For Australian dollar (A$) Spot rate CNY3.2803/A$ One-year forward rate CNY1.8749/A$ One-year A$ deposit and borrowing rate 4.60% One-year call options Exercise price = CNY1.72 Premium = CNYO.16 One-year put options Exercise price = CNY2.31 Premium = CNYO.11