Suppose that on Jan. 1, GE was awarded a contract to supply turbine blades toLuthansa. On Dec. 31, GE would receive payment of Euro10 million for these blades. Themoney market interest rates and foreign exchange rates are given as follows:U.S. interest rate 10% per annumEuro interest rate 15% per annumSpot exchange rate $1/EuroForward exchange rate $0.957/Euro (one-year maturity)

question: Explain the strategy and calculate the hedged value of GEs cash flow using a moneymarket hedge.