Question
1. Assume you are a American and you are making a payment of 100M SWF in 360 days (one year) to a Swiss Supplier. The
1. Assume you are a American and you are making a payment of 100M SWF in 360 days (one year) to a Swiss Supplier. The spot rate is 1.650-70 USD/SWF and the 12 month forward swap rates are 70-90. One year interest rates are 1-3% in the US and 0-2% in Switzerland.
You can hedge yourself by going short USD in the forward market T/F?
2. Assume you are a American and you are making a payment of 100M SWF in 360 days (one year) to a Swiss Supplier. The spot rate is 1.650-70 USD/SWF and the 12 month forward swap rates are 70-90. One year interest rates are 1-3% in USD and 0-2% in Switzerland.
You can hedge yourself by going short SWF in the forward market T/F?
3. Assume you are a American and you are making a payment of 100M SWF in 360 days (one year) to a Swiss Supplier. The spot rate is 1.650-70 USD/SWF and the 12 month forward swap rates are 70-90. One year interest rates are 1-3% in US and 0-2% in Switzerland.
You can hedge yourself by borrowing the PV of 100M SWF and converting proceeds to USD T/F?
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Banking Reforms And Monetary Policy In The Peoples Republic Of China
Authors: Yong Guo
1st Edition
1403900787,1403914540
