Please assist with the following questions. See attached

\"Oh Dear! Not another one!\" groaned Jason Thomas - Company Treasurer. This was the third memo that he had received that morning from the CEO of VCR Importers. It read as follows: From: CEO's Office To: Company Treasurer Jason, I have been looking at some of our foreign exchange deals And they don't seem to make sense. You have explain that this insures us against the risk that the dollar may depreciate over the next year, but it is incredibly expensive insurance. Each dollar buys only 101.3 yen when we buy forward, compared with the current spot rate of 107.52 yen to the dollar. We could save a fortune by buying yen as and when we need them rather than buying them forward. Another possibility has occurred to me. If we are worried that the dollar may depreciate (or do I mean \"appreciate\"?, why don't we buy yen at the low spot rate of 107.52 yen to the dollar and then put them on deposit until we have to pay for the VCRs? That way we can make sure that we get a good rate for our yen. I am also worried that we are missing out on some cheap financing. We are paying about 8% to borrow dollars for one year, but Allen Wright was telling me at lunch that we could get a yen loan for about 1.75%. I find that a bit surprising, but if that's the case, why don't we repay our dollar loan and borrow yen instead? Perhaps we could discuss these ideas at next Wednesday's meeting. I would be interested in your views on the matter. Desmond Will How should Jason respond to Desmond's memo? Is the forward purchase of the yen \"incredibly expensive insurance\"? Would the company be better if it purchased yen and \"then put them on deposit\"? Should the company \"repay the dollar loans and borrow yen instead\