Question: Goodyear Tire & Rubber has received a large export order of EUR 1 0 0 million from a European customer, to be delivered and paid

Goodyear Tire & Rubber has received a large export order of EUR 100 million from a European customer, to be delivered and paid after six months. Goodyear's export manager thinks that EUR is going to depreciate in the next six months and therefore decides to buy EUR 100 million in a spot transaction. The manager is taking the right decision to avoid currency risk.
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