A Jordanian investor and furniture manufacturing with headquarters located in Amman has recently transferred one of the

[answerhappygod]

A Jordanian investor and furniture manufacturing withheadquarters located in Amman has recently transferred one of theproduction lines to China seeking for cheaper labor force, base salaries in Chinese Yawn on a monthly Base. He used to import the raw material from Indonesia and pay inIndonesian Rupiah. The main targeted markets for his products areWest European countries, he used to receive the price in Eurothrough transfer to his account in amman. The supplier gavehim one month free of Interest settlement period to pay forthe material. The importers Place their orders 2 monthsprior to the delivery dates and pay on that date. The riskmanager has a challenge to manage the risk of exchange rate changesfor the four currencies used ( j.D. Indonesian, Rupiah, Euroand Chinese Yawn) design most suitable derivatives to hedgeAgainst The Exchange rate risk between these fourcurrencies.