A US company purchased several boxes of watches from a Swiss company for SFr300,000. This payment must

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A US company purchased several boxes of watches from a Swiss company for SFr300,000.

This payment must be made in Swiss francs 90 days from today. The following quotations and expectations exist:

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Would the company be better off using the forward market hedge or the money market hedge?

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Global Corporate Finance Text And Cases

ISBN: 9781405119900

6th Edition

Authors: Suk H. Kim, Seung H. Kim

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Question Posted: May 22, 2024 06:01 AM

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A US company purchased several boxes of watches from a Swiss company for SFr300,000. This payment must

Question:

90-day US interest rate 4.00% 90-day Swiss interest rare 3.00% 90-day forward rate for francs $0.400 Spot rate for francs $0.404

Step by Step Answer:

Global Corporate Finance Text And Cases

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