You are importing TV sets worth ¥10,000,000 from a Japanese manufacturer,and this amount is payable after 6 months.You can hedge your exchange risk by:

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Since the payment is due after 6 months, there is an exchange rate risk for the importer, as the exchange rate might change during this period. To hedge the exchange rate risk, the importer can buy Japanese yen in the forward market, which allows them to lock in the exchange rate at the current rate for the future payment. This would eliminate the uncertainty of the exchange rate and provide a precise amount to be paid in the importer's currency, thus reducing the risk.

You Are Importing TV Sets Worth ¥10,000,000 from a Japanese