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Company XYZ is a US company that will be buying a large piece of machinery in Japan. XYZ has agreed to pay Japanese Yen when
Company XYZ is a US company that will be buying a large piece of machinery in Japan. XYZ has agreed to pay Japanese Yen when the product is received in September. Draw a diagram that shows (i) the business risk of XYZ, (ii) the futures position that XYZ should take if it wants to hedge the risk and (iii) the net position.
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