Vizor Pharmaceuticals. Vizor Pharmaceuticals, a U.S.-

based multinational pharmaceutical company, is evaluating an export sale of its cholesterol-reduction drug with a prospective Indonesian distributor. The purchase would be for 1,800 million Indonesian rupiah (Rp), which at the current spot exchange rate of Rp12,215/$

translates into nearly $135,000. Although not a big sale by Vizor’s standards, company policy dictates that sales must be settled for at least a minimum gross margin, in this case, a cash settlement of $133,000. The current 90-day forward rate is Rp12,472/$. Although this rate appeared unattractive, Vizor had to contact several major banks before even finding a forward quote on the rupiah. The consensus of currency forecasters at the moment, however, is that the rupiah will hold relatively steady, possibly falling to Rp12,400/$ over the coming 90 to 120 days. Analyze the prospective sale and make a hedging recommendation.