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Suppose that Corporation A exported machinery to a British company and billed 5 million payable in one year. Discuss and show how Corp A uses

Suppose that Corporation A exported machinery to a British company and billed 5 million payable in one year. Discuss and show how Corp A uses money market hedge to eliminate exchange rate risk. What is the exchange rate that Corp A faces?

The US interest rate: 7.00% per annum

The UK interest rate: 6.00% per annum

The spot exchange rate: $1.41/

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