Question: Art s Sporting Goods ordered a shipment of soccer equipment from
Art’s Sporting Goods ordered a shipment of soccer equipment from a manufacturer and distributor in Munich. Payment for the shipment (which is valued at $3.5 million U.S.) must be made in Euros that have changed in value in the last 30 days from 0.6423 euros/$ to 0.6673 euros/$. If this trend is expected to continue, would you as Art's banker recommend that this customer use a currency futures hedge? Why or why not?
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