Suppose Awesome Bar & Grill Inc. is a sports bar located in Canada that will buy 1000 kegs of beer, at 3,500 pesos per keg, from a supplier in Mexico every month for the next 10 years so it can sell beer at it's Monday Night Football events in Vancouver. Awesome Bar & Grill Inc. sells the beer to its customers in Canadian Dollars but pays for the beer from its supplier in Mexican Pesos; Awesome Bar & Grill Inc. therefore exposes itself to currency risk. What kind of financial instrument would best fit Awesome's risk management needs? Select one item from the list below Group of answer choices foreign currency swap barley future stock option D&O insurance.

Suppose Awesome Bar & Grill Inc. is a sports bar located in Canada that will buy 1000 kegs of beer, at 3,500 pesos per keg, from a supplier in Mexico every month for the next 10 years so it can sell beer at it's Monday Night Football events in Vancouver. Awesome Bar & Grill Inc. sells the beer to its customers in Canadian Dollars but pays for the beer from its supplier in Mexican Pesos; Awesome Bar & Grill Inc. therefore exposes itself to currency risk. What kind of financial instrument would best fit Awesome's risk management needs? Select one item from the list below Group of answer choices foreign currency swap barley future stock option D&O insurance.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter11: Managing Transaction Exposure

Section: Chapter Questions

Problem 41QA

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