A U.S. company orders merchandise from a Japanese company at a cost of 100 million yen. The merchandise must be paid for in yen

	Yen per $1	$ per 1 yen
Spot	97.57	0.01025
30-day forward	97.45	0.01026
90-day forward	96.31	0.01038
180-day forward	92.45	0.01082

a. How many U.S. dollars must be raised if payment is due today?

b. Is the dollar appreciating or depreciating against the yen? Explain.

c. How many U.S. dollars must be raised if payment is due in 90 days?

d. Who bears exchange rate risk, the U.S. company or the Japanese company or both? Explain.

e. Describe 2-3 ways the company can reduce exchange rate risk.