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Consider an exporter who is to receive a payment of USD10 million three months from now. The current spot exchange rate is AUD/USD0.6895 - 0.6995

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Consider an exporter who is to receive a payment of USD10 million three months from now. The current spot exchange rate is AUD/USD0.6895 - 0.6995 and the three months forward rate is AUD/USD0.7095 - 0.7100. In 3 months time the spot rate is 0.7150. If the exporter decides to hedge its exchange rate risk by taking out a forward cover, what is the AUD amount to be received in six months

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