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1. (Ch. 11) Forward versus Money Market Hedge on Receivables. Assume the following information: 90-day U.S. interest rate - 1.0% 90-day Euro interest rate -

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1. (Ch. 11) Forward versus Money Market Hedge on Receivables. Assume the following information: 90-day U.S. interest rate - 1.0% 90-day Euro interest rate - 1.6% F. 90-day (EURUSD) - 1.1670 S:(EURUSD) = 1.1600 Assume that Samuel Corp. from the United States will receive EUR 1,000,000 in 90 days. Would it be better off using a forward hedge or a money market hedge? (3 points) Substantiate your answer with estimated revenue for each type of hedge: Forward hedge (7 points) and Money market hedge (12 points) muner of Killam Corp. (a U.S. exporter to Australia), you lion dollar) after

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