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Business, 05.05.2020 09:37 abbyheule1440

American Airlines is trying to decide how to go about hedging Sfr 70m in ticket sales receivable in 180 days. Suppose it faces the following exchange and interest rates.  Spot rate $0.6433-42/SFr  Forward rate (180 days) $0.6578-99/SFr  SFr 180 day interest rate (annualized) 4.01%-3.97%  US $ 180 day interest rate (annualized) 8.01%-7.98% a) What is the hedged value of Americas ticket sales using Forwards

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