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answer asap please Hedging Strategies - Suppose that Retrojo Inc. is a U.S. based MNC that will need to purchase F$2.00 million (Fijian dollars, F$)
answer asap please
Hedging Strategies - Suppose that Retrojo Inc. is a U.S. based MNC that will need to purchase F\$2.00 million (Fijian dollars, F\$) worth of imports from Fiji in 90 days. Currently, the spot rate for the Fijian dollar is $0.46 per F$. - If Retrojo were to exchange U.S, dollars for the required F\$2,000,000.00 Fijian dollars, how much would Retrojo Inc. have to secure today in U.S. dollars? - If Retrojo waits 90 days to make this exchange (perhaps due to insufficient funds on hand), and the Fijian dollar appreciates to $0.59 during those 90-days, how much would Retrojo need? - What can Retrojo do to hedge his position against unexpected changes in the exchange rate Step by Step Solution
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