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ider University may receive 1,000,000 Chinese RMB in one year for payment of the 2023-2024 Cohort of anda Students coming to the USA to study.

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ider University may receive 1,000,000 Chinese RMB in one year for payment of the 2023-2024 Cohort of anda Students coming to the USA to study. There is a chance, due to deteriorating relations between e Biden and Xi Jinping administrations, that the Cohort will be cancelled. The current spot rate of USS to hinese RMB is $0.14 US dollar =1 Chinese RMB (Yuan) and Rider wishes to hedge the possible RMB ceivable to protect against the Xi Jinping administration further weakening its currency. e following calt and put options exist for expiration dates one year from now. Construct a useful hedge en the prediction of the future RMB - US\$ exchange rate and possible outcomes of the hedge and also if ler decides to remain unhedged since there is a possihilit

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