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The US firm for which you work will receive 2,000,000 in one year. Below are the relevant prices and interest rates. S = $1.334/ F

The US firm for which you work will receive 2,000,000 in one year. Below are the relevant prices and interest rates. S = $1.334/ F = $1.325/ i$ = 4% i = 6% What risk do you face with respect to the value of the ? (2 points) Based on the data provided, list the two methods you could use to perfectly hedge this risk. (4 points) Calculate the dollar amount you have in one year for each method, including all transactions and their amounts, and determine which approach is better. (10 points)

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