Question: 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

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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