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Assume that you are an importer of Salmon into Japan from New Zealand. You have agreed to make a payment in US dollars, and you

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Assume that you are an importer of Salmon into Japan from New Zealand. You have agreed to make a payment in US dollars, and you are scheduled to pay $255,000 in 90 days after you receive the Salmon. You face the following exchange rates and interest rates: Spot exchange rate: 106.35/$ 90-day forward exchange rate: 106.02/$ 90-day dollar interest rate: 90-day yen interest rate: 1.94%p.a. 3.25%p.a. Explain two ways to hedge the risk by referring to the contracts and rates listed in the table above (no calculations needed)

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