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What is my currency risk

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Reference no: EM131550073

Question: I run a lemonade stand. I buy lemons from Mexico. I pay in Pesos. I plan to buy 50,000 lemons in May, June, July and August. It's a very big lemonade stand.

- The spot price of lemons is now 1 peso per lemon.

- What is my currency risk?

- How can I manage this risk?

- Please advise.

- You should use the data from the Board of Governors of the Federal Reserve on the Dollar/Peso exchange rate as a starting point.

Reference no: EM131550073

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