Question
The following is an example of a company hedging its foreign currency risk A) needing to pay 100,000 yen to its suppliers in a
The following is an example of a company hedging its foreign currency risk A) needing to pay 100,000 yen to its suppliers in a month, it makes a forward-exchange deal to buy yen. B) expected to receive 100,000 yen from its importers in a month, it makes a forward-exchange deal to buy yen. C) needing to pay 100,000 yen to its suppliers in a month, it sells yen in a spot-exchange deal. D) expected to receive 100,000 yen from its importers in a month, it sells yen in a spot-exchange deal.
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