Exposure to exchange rate, Microeconomics

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Exposure to exchange rate

A US company knows it will have to pay 50 million Yen in three months to a supplier. The current exchange rate is 0.1500 Dollars per Yen. Discuss how forward and options contract can be used by the company to hedge its exposure to exchange rate risk.

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Microeconomics: Exposure to exchange rate

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Microeconomics: Exposure to exchange rate

Reference No:- TGS0935799

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