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As a US importer from Australia, you wish to hedge a 1,050,000 AU$ due in 3 months with futures. The Current futures quote is.76$/AU
As a US importer from Australia, you wish to hedge a 1,050,000 AU$ due in 3 months with futures. The Current futures quote is.76$/AU 3 months from now, the futures quote is .74$/AU, and the spot rate turns out to be .73S/AU. Futures contract sizes for the Australian dollar are 100,000 AUS each. How many dollars will you receive/pay for the goods if you count both the spot transaction and the hedge combined?
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Advanced Accounting
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
2nd edition
1934319309, 978-1934319307
