Question
A Mexican company has an account payable maturing in 12 months in euros for an equivalent of $500,000 euros. Due to the exchange rate fluctuation
A Mexican company has an account payable maturing in 12 months in euros for an equivalent of $500,000 euros. Due to the exchange rate fluctuation of the peso against the euro, the financial administrator has thought about taking care of the exchange rate, so he asks for your advice and that you answer the following:
-What options do you have to cover yourself? Justify the answer - If the forward exchange rate offered by a financial institution is $24.36 MXP/EUR, how much would the company have to disburse within 12 months? -According to MexDer's Electronic Trading System, the exchange rate on the expiration date (convergence price) is $25 MXP/EUR, how much would the company have to disburse at the expiration of the contract?
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Personal Financial Planning For Executives And Entrepreneurs
Authors: Michael J. Nathanson, Jeffrey T. Craig, Jennifer A. Geoghegan, Nadine Gordon Lee, Michael A. Haber, Seth P. Hieken, Matthew C. Ilteris, D. Scott McDonald, Joseph A. Salvati, Stephen R. Stelljes
1st Edition
3030405273, 978-3030405274
