Question
An Indian import export house has a currency exposure to 10 million Japanese Yen. Assume that Yen is not directly quoted against INR. The current
An Indian import export house has a currency exposure to 10 million Japanese Yen. Assume that Yen is not directly quoted against INR. The current spot rates are USD/INR = 79.97 and USD/JPY =137.56. It is estimated that Yen will depreciate to 164 level and Rupee to depreciate against Dollar to 83. The Forward rate for December 2022 USD/YEN = 147.56 and USD/INR 82.52. Given that the actual spot rate on 30 December 2022 was USD/YEN = 137.85 and USD/INR = 79.99, what hedging decisions an Indian company should take?
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The Entrepreneur's Growth Startup Handbook 7 Secrets To Venture Funding And Successful Growth
Authors: David N. Feldman
1st Edition
1118445651, 978-1118445655
