Deal-foreign exchange fluctuations

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You manufacture wine goblets. In mid June you receive order for 10,000 goblets from Japan. Payment of ¥400,000 is due in mid December. You expect the yen to rise from its present rate of $1=¥130 to $1=¥100 by December. You can borrow yen at 6% per annum. What should you do?

Reference no: EM1345973

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Deal-foreign exchange fluctuations : You manufacture wine goblets. In mid June you receive order for 10,000 goblets from Japan. Payment of ¥400,000 is due in mid December.

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