Sadia of Brazil. Sadia concordia SA of Brazil is a manufacturer of food products. Sadia has concluded an agreement with an Australian wheat producer who has agreed to deliver wheat one year from now for A$80 million. Although Sadia will make payment in Australian dollars, this poses the risk of currency exposure of inputs – it must pay foreign suppliers A$20 million worth for inputs on year from now (but they will be delivering the inputs throughout the year). The current spot rate on the Brazilian real (R$) in R$2.2420/A$, but it has been steadily appreciating against the Australian dollar over the past year. from a “low” of R$3200/A$ only a few months ago. Forward contracts between and R$ are difficult to

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