Question
Please place X under an appropriate action in response to foreign-currency rate change Buy = Enter into a forward contract to buy foreign currency. Sell
Please place X under an appropriate action in response to foreign-currency rate change
Buy = Enter into a forward contract to buy foreign currency.
Sell = Enter into a forward contract to sell foreign currency.
Area of Foreign Currency Exposure | Direct Rate or Currency | Expected Direction |
Buy |
Sell |
Neither |
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Exporting | Direct rate | Up | ______ | ______ | ______ |
| Direct rate | Down | ______ | ______ | ______ |
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| U.S. dollar | Strengthen | ______ | ______ | ______ |
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| U.S. dollar | Weaken | ______ | ______ | _____ |
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| Foreign | Strengthen | ______ | ______ | ______ |
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| Foreign | Weaken | ______ | ______ | ______ |
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2. Importing (Payable) | Direct rate | Up | ______ | ______ | ______ |
| Direct rate | Down | ______ | ______ | ______ |
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| U.S. dollar | Strengthen | ______ | ______ | ______ |
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| U.S. dollar | Weaken | ______ | ______ | ______ |
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| Foreign | Strengthen | ______ | ______ | ______ |
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| Foreign | Weaken | ______ | ______ | ______ |
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Tips - Direct rate (quote): 1 Euro = $1.30
UP: 1 Euro = $1.50 ---- Foreign currency strengthens or $US weakens
DOWN: 1 Euro = $1.10 ---- Foreign currency weakens or $US strengthens
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