Weyerhauser is a US based forest products firm In June Weyerhauser delivers a shipment of raw lumber to Japan The y55,000,000 receivables is due 180 days The firm’s foreign exchange advisors believe the yen will be at about y115/$ then, Current spot rate is y110/$ Weyerhauser has received 180 day forward quote of y108/$ If the company does nothing and the exchange rate goes to y115 as
Weyerhauser is a US based forest products firm In June Weyerhauser delivers a shipment of raw lumber to Japan The y55,000,000 receivables is due 180 days The firm’s foreign exchange advisors believe the yen will be at about y115/$ then, Current spot rate is y110/$ Weyerhauser has received 180 day forward quote of y108/$ If the company does nothing and the exchange rate goes to y115 as
Chapter20: Short-term Financing
Section: Chapter Questions
Problem 10QA
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Weyerhauser is a US based forest products firm In June
Weyerhauser delivers a shipment of raw lumber to Japan The y55,000,000
receivables is due 180 days The firm’s foreign exchange advisors believe the
yen will be at about y115/$ then, Current spot rate is y110/$ Weyerhauser has
received 180 day forward quote of y108/$ If the company does nothing and the
exchange rate goes to y115 as expected How much will the firm receive in
dollars in 180 days? Is this cash flow risky or known with certainly today?
Weyerhauser delivers a shipment of raw lumber to Japan The y55,000,000
receivables is due 180 days The firm’s foreign exchange advisors believe the
yen will be at about y115/$ then, Current spot rate is y110/$ Weyerhauser has
received 180 day forward quote of y108/$ If the company does nothing and the
exchange rate goes to y115 as expected How much will the firm receive in
dollars in 180 days? Is this cash flow risky or known with certainly today?
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