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Benou, Inc., a U . S . exporting firm, expects to receive substantial payments denominated in Indonesian rupiah and Thai baht in one month. Based
Benou, Inc., a US exporting firm, expects to receive substantial payments denominated in Indonesian rupiah and Thai baht in one month. Based on today's spot rates, the dollar value of he funds to be received is estimated at $ fo the rupiah and $ for the baht. Thus, Benou is exposed to a currency portfolio weight ed percent in rupiah and percent in baht. The company wants to determine the maximum exp ected onemonth loss due to a potential decline in
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