Question: For the given in Problem 7, indicate how an exporter who expects to receive a payment of 1 million in three months hedges the foreign

For the given in Problem 7, indicate how an exporter who expects to receive a payment of £1 million in three months hedges the foreign exchange risk.
Problem 7
Assume that SR = $2/£1 and the three-month FR = $1.96/£1. How can an importer who will have to pay £10,000 in three months hedge the foreign exchange risk?

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