Money japanese yen call option contracts

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Techno-Logical Inc. Is a smart-phone maufacuter and has issued a 5 year discount note in the amount of 160 million Japanese yen for procurement from its suppliers in Japan. Techno-Logical wants to hedge its currency exposure and the firms financial director has the following suggestions

At the money japanese yen call option contracts

Japanese yen foward contracts

Japanese yen futures contract

Explain exactly the way in which the comapny could use any of these products in its hedging streategy, being sure to compare and contrast the advantages and disadvantages of each.

Reference no: EM133119445

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