Your firm is a U. K.-based importer of bicycles. You have placed an order with a Swiss firm for SFr. 1,000,000 worth of bicycles. Payment (in Swiss francs) is due in 12 months. Use a money market hedge to redenominate this one-year receivable into a euro-denominated receivable with a one-year maturity.
Contract Size Country U. S. $ equiv. Currency per U. S. $ interest rates APR
€10,000 Britain (Pound) $1.96 €0.5102 is = 1%
12 Months Forward $2.00 €0. 5000 ie= 1%
€10,000 Euro $1.56 € 0.64 ie= 2%
12 Months Forward $1.60 € 0.63 ie= 3%
SFr. 10,000 Swiss Franc $0.92 SFr. 1.0870 iSFr.= 4%
12 Months Forward $1.00 SFr. 1.0000
The following were computed without rounding. Select the answer closest to yours.
a. £803,721.49
b. €800,000
c. £780,312.13
d. £72,352.94
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 07:30, QueenNerdy889
1 2 3 4 5 6 7 8 9 10time remaining59: 30in the dark game, how does the author develop the central idea that elizabeth van lew was a spymaster during the civil war? 1 2 3 4 5 6 7 8 9 10time remaining59: 30in the dark game, how does the author develop the central idea that elizabeth van lew was a spymaster during the civil war?
Answers: 1
Business, 22.06.2019 22:30, ninaaforever
Ellen and george work for the same company. ellen, a gen xer, really appreciates the flextime opportunities, while george, a baby boomer, takes advantage of the free computer training offered at the company. these policies are examples of
Answers: 3
Business, 23.06.2019 01:50, breannaasmith1122
The de mesa family will soon be occupying their newly renovated house. however, the bathroom measuring 10ft. by 16 ft. still needs to be covered by tiles. if the tile that they desire measures 2/5 ft by 2/5 ft., how many tiles will they need to cover the bathroom floor?
Answers: 3
You know the right answer?
Your firm is a U. K.-based importer of bicycles. You have placed an order with a Swiss firm for SFr....
Questions in other subjects:
Mathematics, 26.08.2019 00:30
Chemistry, 26.08.2019 00:30
History, 26.08.2019 00:30
Social Studies, 26.08.2019 00:30
