In this scenario i am running my own business multi national corperation and using the euro as my forigen currency. What the buisness is is no concern just worried about the relationship between the home US dollar and the euros we will be recieving. Using this answer the following. Describe your exposure to exchange rate risk. That is$,$ describe the exchange rate conditions affecting the performance of your business. Is your business subject to transaction exposure? Economic exposure? Translation exposure? Explain why your business is or is not subject to each of these types of exposure. Given your exposure to exchange rate risk, explain how you could use forward contracts to hedge. Explain how you could use currency options to hedge your exposure. Review the currency options quotations for the foreign currency of concern in The Wall Street Journal, or from an Internet source, and determine the premium that would be paid to be able to sell the currency at today's spot rate. $($If the currency option data are not available for the currency of concern, skip this question.$)$ Go to www$.$cme.com Determine the prevailing futures price of the main foreign currency for your business. Go to www$.$oanda.comLinks to an external site. Determine the prevailing spot rate. Would you hedge any transactions for your business based on the futures price relative to the spot rate. Question at position $7$

Given that your business has receivables in a foreign currency, you may want to consider financing in that same foreign currency to offset the exposure. Compare

recent interest rate of the foreign currency of concern to the U$.$S$.$ interest rate: Is

the foreign interest rate typically higher or lower than the U$.$S$.$ interest rate? Would

you use financing in that currency to offset receivables? Explain. Explain how you could use foreign financing for your business in a manner that would reduce your exposure to exchange rate risk. Be specific. Explain how your business could ensure payment for the products that you are exporting to a foreign country.