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Q 7 ( a ) U . S . firm Claremont Steel ordered parts for a generator that were made by a British firm. Claremont
Qa US firm Claremont Steel ordered parts for a generator that were made by a British firm. Claremont Steel was required to pay to the British firm on January How many US dollars were required for this transaction assuming the direct quotes in Q
b If Claremont Steels treasure decides to delay purchasing generator parts until next quarter April due to US$ cash flow issues, but he wants to lock in current rates out of fear that the US$ rate movements may end up costing him more to buy the parts next quarter. What mechanism can Claremont Steel use to accommodate this desire? How does it work? use simple language
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