Basic information for this currency pair		USD/JPY
			# units required of the foreign currency			100,000,000
Direct pair (Y/N)	N		# contracts needed to complete the number of units			8
	BId	Ask	Transaction cost to trade one futures contract			$ 5.00
Indirect price (beginning)	131.18	131.21	Transaction cost to trade one options contract			$ 7.50
Indirect price (end)	132.78	133.81
Direct price (beginning)	0.007560	0.007561	4/7/2023	DC1 date
Direct price (end)	0.007470	0.007474	4/14/2023	DC2 date
Pip converter (100 or 10000)
100
Futures contract converter
1
Option price adjustment factor (1,100,10000)
1

2. Assume that on the day of DC1, you had contracted to purchase imports, which would require you to pay 100 million units of the currency on the day of DC2.
a. If you had hedged your position with a forward hedge, how many dollars would you have paid for the goods as of the end of the period?
	Initial spot				Total cost
	Fwd points
	Unit cost
b. If you had hedged your position with a futures hedge, how many dollars would you have paid for the goods as of the end of the school term?
	Final spot
	Futures price (beg)				Total cost (before CME costs)
	Futures price (end)					$ 120
	Unit cost				Total cost