You own a U.S. exporting firm and will receive 10 million Swiss francs in one year. Assume
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• Hedge with one-year forward contract,
• Hedge with a money market hedge,
• Hedge with at-the-money put options on Swiss francs with a one-year expiration date, or
• Remain unhedged.
Which alternative will generate the highest expected amount of dollars? If multiple alternatives are tied for generating the highest expected amount of dollars, list each of them.
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