Whohauser Is a U

question 49

Multiple Choice

Whohauser is a U.S.-based forest products firm. In June Whohauser delivers a shipment of raw lumber to Japan. The ¥55,000,000 receivable is due in 180 days. The firm's foreign exchange advisors believe the yen will be at about ¥115/$ then. The current spot rate is ¥110/$. Whohauser has received a 180 day forward quote of ¥108/$. If the company locks in the forward quote and the exchange rate goes to
¥115 as expected, how much will the firm receive in dollars in 180 days? Is this cash flow risky or known with certainty today?

• A) $509,259 certain
• B) $500,000 risky
• C) $478,261 risky
• D) $500,000 certain

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Definitions:

Six-person Juries

A group of six individuals selected to deliberate and make decisions in a legal case, smaller than the traditional twelve-member jury.

Cohesive

Describes a group or material that sticks together tightly, often used to describe a team with strong bonds and unity.

Minority Talks

Refers to discussions or dialogues that focus on the views, issues, and interests of minority groups within a larger community.

Verdict Change

The alteration of a decision or judgment, especially in a legal context, after reevaluation or appeal.