Explain how you would hedge the birr payable

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Reference no: EM132015943

You own a local coffee house in the northeast part of Lincoln, NE, Rocket Coffee, and you import coffee from Ethiopia, the fifth largest coffee producer in the world. The invoice is priced in Ethopian currency, birr. You would like to hedge your payable but there are no future contracts or currency options for the birr. Explain how you would hedge the birr payable including any assumptions you are making?

Reference no: EM132015943

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