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Subject:
Hedging risk
Category: Business and Money > Finance Asked by: mammabear-ga List Price: $40.00 |
Posted:
17 Dec 2005 15:51 PST
Expires: 18 Dec 2005 14:05 PST Question ID: 606931 |
If my company has just bid on a contract in Japan. They won't know for 3 months whether or not they get the contract, but if we do then we will receive a payment of 10 million yen, 1 year from now. If the yen declines in value the dollar value of this payment will be less that we expected and the project could then show a loss. What are the possible ways that we could protect ourselves against the decline in the value of the yen? What are some possible hypothetical outcomes if we do get the contract and if we don't? |
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