Your Los Angeles company has just sold about Y20,000,000 in goods to your customer in Japan, giving her 180 day payment terms. No L/C is involved. Today's spot rate for yen is Y208/$1. By researching the forward rates, you see the 6 month forward rate is Y209/$1.

1). What might you do to protect your profit margin? to protect your profit margin?

2). Is this forward quote indicating that forward yen is at a premium or a discount against the US$? How do you know that? Is it important?