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Your firm is an Italian exporter of bicycles. You have sold an order to a British firm for 1,000,000 worth of bicycles. Payment from the

Your firm is an Italian exporter of bicycles. You have sold an order to a British firm for 1,000,000 worth of bicycles. Payment from the customer (in pounds sterling) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a euro-denominated receivable with a one-year maturity.

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