11. Money market hedge Please refer to Table 3 in the datafile. What would be the effective amount of USD received when hedging a receivable of 1mln EUR due in 3 months, in the money market? 1min b) 1.188min c) 1.153min d) 1.194min Ganado is a US company interested in hedging currency risk from its European business. You observe the following information related to hedging transaction exposure. bid 1,1823 ask 1,1829 EUR/USD spot Cost of capital (p.a.) 12% Forward market EUR/USD 3-month premium/discount Money market US 3-month borrowing rate (p.a.) 3-month deposit rate (p.a.) Eurozone 10% 8% 8% Options market put Maturity Premium EUR/USD strike call 3 months 1,25% 1,1850 3 months 1,15% 1,1815 11. Money market hedge Please refer to Table 3 in the datafile. What would be the effective amount of USD received when hedging a receivable of 1mln EUR due in 3 months, in the money market? 1min b) 1.188min c) 1.153min d) 1.194min Ganado is a US company interested in hedging currency risk from its European business. You observe the following information related to hedging transaction exposure. bid 1,1823 ask 1,1829 EUR/USD spot Cost of capital (p.a.) 12% Forward market EUR/USD 3-month premium/discount Money market US 3-month borrowing rate (p.a.) 3-month deposit rate (p.a.) Eurozone 10% 8% 8% Options market put Maturity Premium EUR/USD strike call 3 months 1,25% 1,1850 3 months 1,15% 1,1815