You Are Importing TV Sets Worth ¥10,000,000 from a Japanese

question 9

Multiple Choice

You are importing TV sets worth ¥10,000,000 from a Japanese manufacturer, and this amount is payable after six months.You can hedge your exchange risk by doing one of the following.

• A)Buying Japanese Yen in the forward market.
• B)Selling Japanese Yen in the forward market.
• C)Borrowing Japanese Yen.
• D)Do nothing.