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Question about hedging A Chinese-based exporter of electronic parts will receive $2,000,000(based on the contract)from a U.S. importer in one year. The spot exchange rate

Question about hedging

A Chinese-based exporter of electronic parts will receive $2,000,000(based on the contract)from a U.S. importer in one year. The spot exchange rate is 6.84/$1. The interest rate in China is 5% and in the US it is 3%. How can the Chinese exporter hedge this payable?

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