Question
A Japanese importer has a $1,250,000 payable due in one year. Spot exchange rates are $1 per 100, 1-year forward rates are $1 per 120.
A Japanese importer has a $1,250,000 payable due in one year. Spot exchange rates are $1 per 100, 1-year forward rates are $1 per 120. The contract size is 12,500,000. Which strategy can hedge his exchange rate risk?
none of the options
Go short in dollar forward contracts.
Go long in dollar forward contracts.
Go long in yen forward contracts.
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The Cyber Attack Survival Manual
Authors: Heather Vescent ,Nick Selby
1st Edition
1681886545, 978-1681886541
