Wednesday
October 1, 2014

Homework Help: economics

Posted by Anonymous on Sunday, February 21, 2010 at 8:17pm.

As such, you are assigned the duty of ensuring the availability of 100,000 yen for a payment scheduled for next month. Considering that your company possesses only US dollars, identify the spot and forward exchange rates. What are the factors that influence your decision to use the spot or forward exchange rate? Which one would you choose? How many dollars must you spend to acquire the amount of yen required?

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