GE Transportation just sold locomotives to a Chinese importer. The payment of $80 million is due in six months, then

 An exporter can shift exchange rate risk to their customers by

 The hedging strategy that Nike’s shoes are primarily made in Malaysia, Philippines, Indonesia, Vietnam now instead of China compared with 10 years ago is an example of _________.

Walmart financial statement shows that Walmart only hedges Japanese Yen and British Pound (instead of over 100 foreign currencies). Which of the following best describes Walmart’s hedging strategy? 

 In Aspen Skiing Company case, the strong dollar in 80s had a _______ effect on the competitive position of Aspen Skiing Company.

Questions 37-40 are based on the following information: (15 points in total) A U.S. firm holds an asset in UK and considers selling it in one year. The firm faces the following scenario of the future spot rates in one year:   State 1 State 2 State 3 State 4 State 5 Probability 20% 20% 20% 20% 20% Spot rate ($/£) 1.6 1.5 1.4 1.3 1.2 P*(£) 1200 1400 1600 1800 2000 P ($) $1920 $2100 $2240 $2340 $2400 In the above table, P* is the pound price (local price) of the asset in UK held by the U.S. firm and P is the dollar price of the asset. The variance of the dollar value of the hedged position is .

 When the domestic currency is strong or expected to become strong 

 XYZ Corporation, located in the United States, has an accounts payable obligation of ¥750 million payable in one year to a bank in Tokyo. Which of the following is NOT part of a money market hedge? 

There are a number of alternatives when it comes to the capital structure for acquisitions of commercial real estate. Through which of the following lending relationships does the lender have the right to foreclose on the equity of the borrower’s company in the case of default?

Net present value (NPV) is interpreted using the following decision rule: The investor will purchase the property as long as the NPV is: