Question
A French company sold a product to an American client for an amount of 100 000 USD payable in 3 months 1) The quotes communicated
A French company sold a product to an American client for an amount of 100 000 USD payable in 3 months
1) The quotes communicated by the bank are the following:
Spot EUR/USD = 1.2020 22
3 month Forward quotes EUR/USD = 1.1818 20
2) What has the French exporter to do in order to hedge in the forward market?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakin
7th Global Edition
0273754440, 9780273754442
