Question
Harley Davidson Corporation (based in the U.S.) just entered into a five-year contract to supply motorcycles to an Australian company. Harley Davidson will receive Australian
Harley Davidson Corporation (based in the U.S.) just entered into a five-year contract to supply motorcycles to an Australian company. Harley Davidson will receive Australian dollar-denominated payments from the customer over the next five years. Harley Davidson can reduce its operating exposure by
Buying call options on the Australian dollar | ||
Entering into interest rate swap contracts to swap fixed interest rate cash flows for floating interest rate cash flows | ||
Entering into cross-currency swap contracts to sell Australian dollars and buy U.S. dollars | ||
Entering into a forward contract to sell U.S. dollars and buy Australian dollars | ||
Entering into cross-currency swaps contracts to sell U.S. dollars and buy Australian dollars |
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