Arts sporting goods has ordered a shipment of soccer


Question: Art's Sporting Goods has ordered a shipment of soccer equipment from a manufacturer and distributor in Munich. Payment for the shipment (which is valued at $3.5 million U.S.) must be made in euros that have changed in value in the last 30 days from .8198 euros/$ to .8419 euros/$. If this trend is expected to continue, would you as Art's banker recommend that this customer use a currency futures hedge? Why or why not?

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Finance Basics: Arts sporting goods has ordered a shipment of soccer
Reference No:- TGS02518970

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