A US investors holds bonds in Yen, and he want to hedge the currency risk.
Identify the appropriate forward transaction. Please list all possible descriptions of this forward. ([long/short, buy/sell, deliver/receive, dollar/yen]. I believe there are more than one way to describe this forward.)
Note: added buy/sell.
here is my best guess:
he’d want to sell the forward contract on the Yen to lock in today’s exchange rate
…* *R&(E*R&S*E^R*SER^&8we6r78SGVAGDhagv sjhkhsjcv
short Yen forward (Dollar/Yen Yen/Dollar doesn’t matter)
sell Yen forward
Deliver Yen and receive USD at expiration at the forward rate
that’s what i said in not so many words! haha