Question
The Japanese Yen (JPY) spot rate, relative to the $ (USD), is currently 110 (/$). You are a US company and expect to pay 50
The Japanese Yen (JPY) spot rate, relative to the $ (USD), is currently 110 (/$). You are a US company and expect to pay 50 million in 1-month. How should you hedge your currency risk using forwards?
a. Buy the Yen Forward
b. Sell the Yen Forward
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
