Problem
LAST WORD Suppose Super D'Hiver-a hypothetical French snowboard retailer-wants to order 5000 snowboards made in the United States. The price per board is $200, the present exchange rate is 1 euro =$1, and payment is due in dollars when the boards are delivered in 3 months. Use a numerical example to explain why exchange-rate risk might make the French retailer hesitant to place the order. How might speculators absorb some of Super D'Hiver's risk?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.