Nelson Sporting Goods has ordered a shipment of sporting goods from a manufacturer and distributor in Munich.
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Nelson Sporting Goods has ordered a shipment of sporting goods from a manufacturer and distributor in Munich. Payment must be made in euros, which have changed in value over the last thirty days from 1.0268 euros/$ to 1.0592 euros/$. If this trend is expected to continue, would you as Nelson's banker recommend that this customer use a currency futures hedge? Why or why not? What would be the purpose of using a currency futures hedge?
Related Book For
Statistics for Business Decision Making and Analysis
ISBN: 978-0321890269
2nd edition
Authors: Robert Stine, Dean Foster
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