Zen Textile, located in Haining, Zhejiang, is a high-quality socks manufacturer. Its products are usually exported to US, Europe and Japan. Zen Textile generally invoices in CNY when it sells to foreign customers. Nevertheless, it has just received an order from UNIQLO in Japan for CNY50,000,000 of its products, conditional upon delivery being made in three months time and the order invoiced in Japanese yen. Zens CFO, Mr. Wang, is concerned with whether US dollar will appreciate versus the Japanese yen over the next three months, thus eliminating all or most of the profit when the yen receivable is paid. He thinks this an unlikely possibility, but he decides to contact the firms banker for suggestions about hedging the exchange