Measuring and Managing Operating Exposure Ayota Car Company…

Measuring and Managing Operating Exposure Ayota Car Company produces a car that sells in Japan for ¥1.8 million. On September 1, the beginning of the model year, the exchange rate is ¥150:$1. Consequently, Ayota sets the U.S. sticker price at $22,000. Suggest two production strategies for Ayota to improve its situation?

DKNY owes Euro 170 million in 60 days for a recent shipment…

DKNY owes Euro 170 million in 60 days for a recent shipment of Spanish textiles. It faces the following exchange rates: Spot rate:                                                                     Euro 0.89/$ Forward rate (30 days)                                               Euro 0.91/$ Forward rate (60 days)                                               Euro 0.93/$   DKNY can avoid its transaction exposure altogether if the Spanish textile exporter allows it to pay the sale in dollars. Suppose the Spanish exporter, an informed customer, is willing to receive payments in dollars, what dollar value should it charge? Is it possible for DKNY to gain from risk shifting?