Based on its expectations the company enters

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A US company expects to pay 2,500,000 Japanese yen 30 days from now. It decides to hedge thee position by buying Japanese yen forward. The current spot rate of the yen is $.0089, while the forward rate is $0.0090. The firm expects the spot rate in 30 days to be $.0094. Based on its expectations the company enters into derivative contracts to maximize its profits. How many dollars will the company pay for the 5,000,000 yen 30 days from now?

Reference no: EM131351696

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