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Sony of Japan and Best Buy of the United States have entered into a 5-year currency risk sharing agreement for Sony to accept U.S. dollar

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Sony of Japan and Best Buy of the United States have entered into a 5-year currency risk sharing agreement for Sony to accept U.S. dollar payments. If the spot rate on the day of invoicing is between JPY96/USD and JPY104/USD, Sony will invoice at the actual spot rate. Otherwise, Sony will invoice Best Buy at the exchange rate where the two parties will share the yen fluctuation from the limits equally. of the spot rate on the invoicing date is JPY10B/USD, how does the risk sharing agreement affect Best Buy on an order of JPY 100,000,000? Because of the risk sharing agreement, Best Buy winds up paying USD 35,842.29 more The risk sharing agreement saves Best Buy 5,511.16 Because of the risk sharing agreement, Best Buy winds up paying USD 17.470.30 more The risk sharing agreement saves Best Buy USD 4,300.39 The risk sharing agreement saves Best Buy USD 35,842.29 The Xanadu Investment Group, a private equity firm based in Florida, borrows GBP 1,000,000 for one year at 6% p.a. What is the dollar cost of this loan if the pound appreciates from USD1.31/GBP to USD1.35/GBP over the year? 10.04% 9.24% 8.76% 11.31% 10.85%

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