Question
An Australian business importing from Germany needs to settle payment in Euro currency in one month's time. If the Australian dollar is expected to weaken
An Australian business importing from Germany needs to settle payment in Euro currency in one month's time. If the Australian dollar is expected to weaken against the Euro during this period, transaction risk can be best managed by:
| a. | Converting Australian dollar to Euro using spot rate on the day of payment next month. | |
| b. | Using a lagging strategy to delay payment in Euro. | |
| c. | Using a leading strategy to settle payment earlier in Euro. | |
| d. | Speculating in US dollar and converting the profits to Euro for payment next month. |
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
