Question: Intro Spot exchange rates $ 1.00 = 100 1-year Forward Rates $ 1.00 = 120 Contract size 12,500,000 Part 1 Attempt 1/2 for 10 pts.

Intro Spot exchange rates $ 1.00 = 100 1-year Forward Rates

Intro Spot exchange rates $ 1.00 = 100 1-year Forward Rates $ 1.00 = 120 Contract size 12,500,000 Part 1 Attempt 1/2 for 10 pts. A Japanese importer has a $1,250,000 receivable due in one year. Hedge with forward contracts. Check all that apply. Go short yen forward contracts if available. Go long yen forward contracts if available. Go short dollar forward contracts if available. Go long dollar forward contracts if available. Submit Part 2 Attempt 1/4 for 10 pts. Forward contracts on yen are available as the Table shows. How many contracts are needed? 0+ decimals Submit

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