Question
90-day U.S. interest rate = 1.0% 90-day Euro interest rate = 1.6% Ft. 90-day (EURUSD) = 1.1670 S.(EURUSD) = 1.1600 Assume the following information:
90-day U.S. interest rate = 1.0% 90-day Euro interest rate = 1.6% Ft. 90-day (EURUSD) = 1.1670 S.(EURUSD) = 1.1600 Assume the following information: 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? Substantiate your answer with estimated revenue for each type of hedge: Forward hedge (7 points) and Money market hedge
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Exploring Economics
Authors: Robert L Sexton
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978-1439040249, 1439040249
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