Soleil Inc.,a French manufacturer of sunscreen,has agreed to sell sunscreen to a Danish retailer for 2 million Danish kroner to be received in 180 days.The current spot rate is DKR5.02/EUR and the 180-day forward rate is DKR5.23/EUR.The current interest rates are 5% in Denmark and 4% in France.Should the firm use a forward hedge or a money market hedge?
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