Current spot rate ($/)	$1.4158
Credit Suisse 90-day forward rate ($/)	$1.4172
Barclays 90-day forward rate ($/)	$1.4195
Mattel Toys WACC ($)	9.600%
90-day eurodollar interest rate	4.000%
90-day euro interest rate	3.885%
90-day eurodollar borrowing rate	5.000%
90-day euro borrowing rate	5.000%

a. How much in U.S. dollars will Mattel receive in 90 days without a hedge if the expected spot rate in 90 days is the same as the current spot rate of

$1.4158/?

$enter your response here

(Round to the nearest dollar.)

Part 2

How much in U.S. dollars will Mattel receive in 90 days without a hedge if the expected spot rate in 90 days is the same as the Credit Suisse forward rate of

$1.4172/?

$enter your response here

(Round to the nearest dollar.)

Part 3

How much in U.S. dollars will Mattel receive in 90 days without a hedge if the expected spot rate in 90 days is the same as the Barclays forward rate of

$1.4195/?

$enter your response here

(Round to the nearest dollar.)

Part 4

How much in U.S. dollars will Mattel receive in 90 days without a hedge if the expected spot rate in 90 days is the same as the expected spot rate of

$1.4200/?

$enter your response here

(Round to the nearest dollar.)

Part 5

b. How much in U.S. dollars will Mattel receive in 90 days if the accounts receivable is covered by the Credit Suisse 90-day forward contract?

$enter your response here

(Round to the nearest dollar.)

Part 6

How much in U.S. dollars will Mattel receive in 90 days if the accounts receivable is covered by the Barclays 90-day forward contract?

$enter your response here

(Round to the nearest dollar.)

c. How much in U.S. dollars will Mattel receive in 90 days with a money market hedge?

$enter your response here

(Round to the nearest dollar.)

Part 8

d. Advise Mattel on which hedging alternative is probably preferable.(Select from the drop-down menu.)

The

forward market hedge

money market hedge

guarantees Mattel the greatest dollar value for the accounts receivable when using the cost of capital as the reinvestment rate (carry-forward rate).