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CORRECT ANSWER IS THERE. JUST NEED HELP WITH CALCULATIONS! THANK YOU 19) A U.S. importer has to pay Euros 400,000 in 1-year. The importer decides
CORRECT ANSWER IS THERE. JUST NEED HELP WITH CALCULATIONS!
THANK YOU
19) A U.S. importer has to pay Euros 400,000 in 1-year. The importer decides to hedge foreign exchange risk using a 50% long Euros forward contract hedge. The importer has been quoted a 1-year forward rate of $1.12 /Euros. If the spot rate in 1 year turned out to be $1.25 /Euros, how much U.S. dollars would be needed to payoff the Euros payable? Ans: $474,000 20) A U.S. importer has to pay Euros 400,000 in 1-year. The importer decides to hedge foreign exchange risk using a 50% long Euros forward contract hedge. The importer has been quoted a 1-year forward rate of $1.12 /Euros. If the spot rate in 1 year turned out to be $1.05 /Euros, how much U.S. dollars would be needed to payoff the Euros payable? Ans: $434,000Step by Step Solution
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Building The High Performance Finance Function
Authors: André De Waal , Eelco Bilstra ,Jacques Bootsman
1st Edition
1799869296,1799869326
