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Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per US$ British Pound 1.5347 0.6516 Norwegian Kroner 0.1690 5.9172 Thai Baht 0.0310 32.258 A US importer has
Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per US$ British Pound 1.5347 0.6516 Norwegian Kroner 0.1690 5.9172 Thai Baht 0.0310 32.258 A US importer has arranged to purchase goods from a Chinese exporter, and will sell those goods in the US. The goods will be delivered immediately, but the importer will not pay for the goods for 30 days. What potential problem or problems will be introduced if the importer decides to hedge the foreign exchange using futures contracts? A. Arbitrage B. Depreciation C. Leverage D. Commitment E. Regret Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per US$ British Pound 1.5347 0.6516 Norwegian Kroner 0.1690 5.9172 Thai Baht 0.0310 32.258 A US importer has arranged to purchase goods from a Chinese exporter, and will sell those goods in the US. The goods will be delivered immediately, but the importer will not pay for the goods for 30 days. What potential problem or problems will be introduced if the importer decides to hedge the foreign exchange using futures contracts? A. Arbitrage B. Depreciation C. Leverage D. Commitment E. Regret
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