A Japanese firm has a contract to buy equipment from a US manufacturer for $2.20m in 30 days. The current spot rate is 110 JPY/USD. A. The Japanese firm has an asset/liability position in dollars. B....

A Japanese firm has a contract to buy equipment from a US manufacturer for $2.20m in 30 days.  The current spot rate is 110 JPY/USD.

A. The Japanese firm has an asset/liability position in dollars.

B. The Japanese firm faces the risk that the yen will appreciate/depreciate.

C. How can the firm hedge this risk (be specific and detailed)?