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Columbus Surgicals Inc. is based in US, has recently imported surgical raw materials from the UK and has been invoiced for 480,000, payable in 3
Columbus Surgicals Inc. is based in US, has recently imported surgical raw materials from the UK and has been invoiced for 480,000, payable in 3 months. It has also exported surgical goods to India and France Tho Indian customer has been invoiced for 138,000, payable in 3 months, and the French customer has been invoiced for 590,000, payable in 4 months. Current spot and forward rates are as follows E/USS Spot: 0.9830 0.9850 Three months forward: 0.9520-0.9545 USS/ Spot: Four months forward: 1.9510 1.9540 .8890-1.8920 Current monoy market ratos aro as follows: UK Franco: USA 10.0%-12.0%pa. 14.0%-16.0%pa. 11.5%-13.0%pa. You as Treasury Manager aro required to show how tho company can hedgo its foreign oxchango oxposuro using Forward markots and Monoy markots hodge and suggest which tho bost hodging tochniquo is
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