DO OUTRIGHT FORWARDS EXCHANGE MECHANISM

• suppose that U.S. company is expecting to receive 10 million CHF in 3 months and to pay 1 million EUR in 1 week

• the company is willing to hedge these future payments and to lower CHF and EUR currency exposure

• use www.investing.com web site and look at actual bid and ask forward (swap) points for USD/CHF and EUR/USD currency pairs for above mentioned maturity (you find them in section MARKETS/CURRENCIES/FORWARD RATES) (be careful, 1 point is 0,0001, therefore 1,5 point is 0,00015)

• figure out bid or ask USD/CHF and EUR/USD forward rate that the company needs for planned hedging transactions (actual spot rates could be found at MARKETS/CURRENCIES/FOREX RATES)

(This is the complete question, solve by using Forward Exchange Principle)