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As a European(EUR) importer buying from Hong Kong(HKD) and being paid in 1 year, you are given the following information: Transaction size 380,806 Hong Kong
As a European(EUR) importer buying from Hong Kong(HKD) and being paid in 1 year, you are given the following information: | ||||
Transaction size 380,806 Hong Kong Dollars | ||||
Investment Rate ANNUAL | Borrowing Rate ANNUAL | |||
Europe | 1.10% | 5.10% | ||
Hong Kong | 10.90% | 14.50% | ||
Spot Rate | 9.205 Hk/E | 9.235 Hk/E | ||
How much would you receive if you hedged with the money market hedge? |
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