Order the answer to: Suppose Super D’ Hiver––a hypothetical French snowboard retailer

Best Writers business-economics Order the answer to: Suppose Super D’ Hiver––a hypothetical French snowboard retailer

business-economics

Order the answer to: Suppose Super D’ Hiver––a hypothetical French snowboard retailer

Question Suppose Super D’ Hiver––a hypothetical French snowboard retailer––wants to order 5000 snowboards made in the United States. The price per board is $200, the present is 1 euro = $1, and payment is due in dollars when the boards are delivered in 3 months. Use a numerical example to explain why exchange-rate risk might make the French retailer hesitant to place the order. How might speculators absorb some of Super D’ Hiver’ risk?
Subject business-economics
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