Suppose that Retrojo Inc. Is a U.S. based MNC that will need to purchase F\$1.70 million (Fijan dollars, F\$) worth of imports from Fij in 90 days. Currently, the spot rate for the Fijlan dollar is $0.48 per F\$. If Retrojo were to exchange U.S. dollars for the required F$1,700,000,00Fj jan dollars, it would need (U.S. dollars). If Retrojo waits 90 days to make this exchange (perhaps due to insufficient funds on hand), and the Fijan dollar appreciates to $0.58 during those 90 -days, then Retrojo would need (U.S. dollars). Thus, if Retrojo belleves that the Fijlan dollar will appreciate, it can its exposure to such exchange rate risk by locking in the original exchange rate through the use of a forward contract