Intro For a US firm to hedge a 1,250,000 receivable (or payable) in one year, which of the two strategies (forward hedge vs money-market hedge) is better when interest rate parity relationship does not hold? * Attempt 1/2 for 10 pts. Part 1 If S(1+is) F(1+le), and if the US firm is to hedge a 1,250,000 receivable O forward hedge is better O depends on the forward contract size O depends on the future spot exchange rate in one year money-market hedge is better the two strategies work equally well Submit