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Author Question: Your U.S.-based company is selling parts to a company in Bangladesh. If the Bangladeshi company ... (Read 462 times)

Diane

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Question 1

Your U.S.-based company is doing business internationally. One way to mitigate exchange rate risk is to
◦ require payment in US$.
◦ use a forward contract.
◦ use a futures contract.
◦ All of these.

Question 2

Your U.S.-based company is selling parts to a company in Bangladesh. If the Bangladeshi company purchases a futures contract,
◦ the Bangladeshi company bears the exchange rate risk.
◦ your company bears the exchange rate risk.
◦ the companies share in the exchange rate risk.
◦ there is no exchange rate risk.


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Marked as best answer by Diane on Mar 14, 2021

Bigfoot1984

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Diane

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Reply 2 on: Mar 14, 2021
Great answer, keep it coming :)


bulacsom

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Reply 3 on: Yesterday
Wow, this really help

 

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