Hedge your position by selling japanese yen forward


Your company expects to receive 5,000,000 Japanese yen 60 days from now. You decide to hedge your position by selling Japanese yen forward. The current spot rate of the yen is $.0089, while the forward rate is $.0095. You expect the spot rate in 60 days to be $.0090. How many dollars will you receive for the 5,000,000 yen 60 days from now?

A) $44,500.

B) $45,000.

C) $526 million.

D) $47,500.

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Business Management: Hedge your position by selling japanese yen forward
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