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Temka [501]
3 years ago
7

Mondo Corporation is a U.S. firm that invoices some of its exports in Japanese yen. If it expects the yen to weaken, it could __

__ to hedge the exchange rate risk on those exports.
Business
1 answer:
Allisa [31]3 years ago
5 0

Answer:

The answer is 'sell future contracts on yen

Explanation:

Futures contract is a form of derivative that is standardized. It occurs through the exchange rather than over the counter. It is safe from default or counterparty risk because the clearing house guarantees any loss.

Futures contract obligates the parties involved to either buy or sell the underlying security.

Because Mondo corporation is expecting some of its exports in yen and it is afraid of fall in exchange of yen relative to US dollar, to hedge the risk, it must sell future contracts on yen.

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Answer:

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3 years ago
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Are ups and downs in the level of economic activity

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4 years ago
An apparel manufacturing plant has estimated the variable cost to be $3.30 per unit. Fixed costs are $1,800,000 per year. Forty
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$15.30

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