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Draco Inc. purchased a Korean company that produces plastic nuts and bolts for auto manufacturers. The purchase price was 7 , 0 0 0 million
Draco Inc. purchased a Korean company that produces plastic nuts and bolts for auto manufacturers. The purchase price was million Won. million Won has already been paid and the remaining million Won is due in six months.
a Discuss the foreign exchange exposure that Draco Inc. may experience in the coming months.
b Suggest the tools you might use to hedge the transactions.
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