Your company is exporting product to Peru. Your best guess is that, over the coming year, you will have sales equal to $55$ million Peruvian Soles $($their currency$).$ However, those sales will depend a lot on the results of the upcoming election in Peru and could, in reality range from a value of $40$ million to $75$ million soles.

If you decide to enter a hedge for $55$ million soles, what are the risks from doing so$?$ Are there ways to reduce that risk? At what cost?