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VivreNippon is a French based company that exports perfume to Japan and has significant inflows in Japanese yen. To reduce the exchange risk from those
VivreNippon is a French based company that exports perfume to Japan and has significant inflows in Japanese yen. To reduce the exchange risk from those yen inflows, the management can use the following hedging techniques:
I. import raw materials from Japan denominated in yen
II. pay suppliers from other countries in yen
III.acquire debt denominated in euro
Answers:
- I only
- II only
- III only
- I and II only
- I and III only
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