You have a five year contract to build a theme park in Japan, for which you...
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You have a five year contract to build a theme park in Japan, for which you will be paid US$100 million. You anticipate paying ¥10,000 million to your Japanese workers and sub-contractors. Your firm has an excellent credit rating. Describe how you might hedge this operating exposure. Currently, the exchange rate is 100 JPY/USD. You have a five year contract to build a theme park in Japan, for which you will be paid US$100 million. You anticipate paying ¥10,000 million to your Japanese workers and sub-contractors. Your firm has an excellent credit rating. Describe how you might hedge this operating exposure. Currently, the exchange rate is 100 JPY/USD.
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Answer rating: 100% (QA)
There are various ways to hedge a currency fluctuation exposure A few are briefly explained below 1 ... View the full answer
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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