Assume the MNC settles its payables from Canada. The MNC has payables of 100,000 (if your MNC is operating in one of the EU countries, the amount should be 100,000 euros, in the USA US$100,000 in India rupees etc.). The foreign country is identified from question 1b). The MNC also expects to receive receivables of 200,000 (again if your MNC is operating in one of the EU countries, the amount should be 200,000 euros, in the USA US$100,000 in India rupees etc.).

Instructions to complete C: From the bank identified in question 5a, go to the banks website to find the banks lending, and deposit rates, and stop and forward rates.

Go to the MNC bank in Canada to find the banks lending, deposit rates, and stop and forward rates.

Take a snapshot of each of the rates both foreign and domestic banks (lending, deposit, spot, and forward rates) and include it in your response along with your references (banks website). If evidence is not provided you will receive zero for your response as I will have no way to check if your response is correct.

Use the information you have collected to answer 1, 11, and 111 below. Using the hedging strategies (forward and money market) to determine the most effective strategy for the MNC payable of 100,000 (US$, euros, rupees, yuan, etc) and receivables of 200,000 (US$, euros, rupees, yuan, etc.). You should use the currency of the host or foreign country.

1. Determine the number of dollars the MNC will receive using each strategy

11. Determine the number of dollars needed to pay the payable using each strategy

111. Select the strategy that you prefer based on the information your results.

Local country: Canada

Foreign or Host country: USA

Chosen Bank: Bank of America