Spot and forward exchange rates between the two currencies

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One of your company's essential suppliers is located in Japan. Your company (India) needs to make 1 million Japanese yen payment in six months. Considering that your company primarily operates in U.S. dollars, you are assigned the task of deciding on a strategy to minimize your transaction exposure. Identify the spot and forward exchange rates between the two currencies. What factors influence your decision to use each? Which one would you choose? How many dollars must you spend to acquire the amount of yen required?

Reference no: EM131016266

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