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The Danish meat exporter PignChoose has just gotten an order of 10 tons of bacon to be shipped to Korea 90 days from now, at

The Danish meat exporter PignChoose has just gotten an order of 10 tons of bacon to be shipped to Korea 90 days from now, at which time it will also receive a payment equal to 240.000.000 Korean won. The spot exchange rate is KRW1600/EUR, the 90-day won interest rate is 5% p.a. while the 90-day euro interest rate is 2% p.a. Explain how PignChoose can construct a synthetic hedge against its exchange rate risk.

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