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:

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The concentration of estrogen hormones in the body, which are crucial for regulating various functions in both females and males.

Postmenopausal Period

The stage in a woman's life after she has experienced 12 consecutive months without a menstrual period, marking the end of menstrual cycles.

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A condition characterized by a lack of moisture in the vaginal area, often causing discomfort or pain, frequently associated with menopause.

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