Question
1.If six-month domestic interest rate is 6% while 6-month foreign interest rate is 2%. What would be the hedging cost of an exporter with foreign
1.If six-month domestic interest rate is 6% while 6-month foreign interest rate is 2%. What would be the hedging cost of an exporter with foreign currency receivables in six months?
A.The exporter will pay 4% interest
B.The exporter will pay 6% interest
C.The exporter will receive 4% interest
D.The exporter will receive 6% interest
E.None of the above
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The Macro Economy Today
Authors: Bradley R. Schiller, Karen Gebhardt
14th edition
1259291820, 978-1259291821
