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a) Suppose a European corporation imports a machine from the US that is priced in producer currency, and needs to pay 1 million dollars in
a) Suppose a European corporation imports a machine from the US that is priced in producer currency, and needs to pay 1 million dollars in 60 days' time. What "position" has the importer taken in foreign currency, and what currency risk does the importer confront? Discuss the alternatives available to this corporation in meeting the payment obligation and managing the risk it implies. What factors are important in determining which strategy is best
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