Mendy's, a Canadian company, sells frozen food to Japan. Every month Mendy's receives a payment of JPY 15,000,000. The exchange rate is .01 CAD/JPY. The volatility (i.e., standard deviation) of the CAD/JPY exchange rate is .002. Provide a range for Mendy's exposure, measured in CAD? Without using futures, options, or a money market hedge, how would you recommend Mendy's to reduce its FX exposure?Below is the link of above question that needs to be unlocked:
https://www.coursehero.com/tutors-problems/Finance/25201795-Mendys-a-Canadian-company-sells-frozen-food-to-Japan-Every-m...
sssonu143
