A U.S.-based firm with dollar denominated debt, but continuing sales denominated in Japanese yen, could
A) purchase an interest rate cap agreement.
B) enter into a swap agreement to swap dollar interest for Japanese interest payments.
C) purchase a series of rolling futures contracts to buy Japanese yen forward.
D) all of the above.

Question

Quizplus · Accepted Answer

The Answer of A U.S.-based firm with dollar denominated debt, but continuing sales denominated in Japanese yen, could
A) purchase an interest rate cap agreement.
B) enter into a swap agreement to swap dollar interest for Japanese interest payments.
C) purchase a series of rolling futures contracts to buy Japanese yen forward.
D) all of the above.

A US-Based Firm with Dollar Denominated Debt, but Continuing Sales Denominated