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Suppose you are in the business of importing and exporting in India. You want to hedge your transaction exposure. You Your associated cash flows for

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Suppose you are in the business of importing and exporting in India. You want to hedge your transaction exposure. You Your associated cash flows for export are CNY 1,750,000 in 4 months. Conduct a futures hedge for transaction exposure associated with the cash flows gained from export explaining the process and showing your net CF after hedging. Assuming in the future when your receive cash flows, spot rate at that time is [St(2)] how do you feel about your hedging decision? Clearly show your steps with formulas where applicable. Explain clearly the process of hedging associated with export along with the cash flows that you are hedging. You will lose points if you do not show process and explain the steps

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