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A Japanese exporter has a €1,000,000 receivable due in one year. Spot and forward exchange rate data is given:Spot exchange rates1-year Forward RatesContract size$1.20=€1.00$1.25=€1.00€62,500$1.00=¥100$1.00=¥120¥12,500,000The one-year risk free rates are i$ = 4.03%; i€ = 6.05%; and i¥ = 1%. Detail a strategy using forward contracts
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