Question: The current spot exchange-rate is $0.010/yen. The current 60-day forward exchange rate is $0.009/yen. How would the U.S. firms and people described in question 3

The current spot exchange-rate is $0.010/yen. The current 60-day forward exchange rate is $0.009/yen. How would the U.S. firms and people described in question 3 each use a forward foreign exchange contract to hedge their risk exposure? What are the amounts in each forward contract?

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a The US firm has an asset position in yenit has a long position in yen To hedge its exposure to exc... View full answer

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