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Foreign Currency Spot Date Current Spot Rate in European Terms (FX per One USD) Pair Six - Month Forward Rate in European Terms (FX per
Foreign Currency Spot Date Current Spot Rate in European Terms (FX per One USD) Pair Six - Month Forward Rate in European Terms (FX per One USD) 1/1.2120= EUR 0.8251 6M FWD = 1.2120 + 0.00456= 1.2167 per USD EUR/USD 2/13/2021 1/1.2167 = EUR 0.8219 per USD Based on the data above, answer the following questions: + a) At the current spot rate how much in the foreign currency are you owed in 6 months? 1 b) Assuming you fully hedge your FX exposure in the forward market, how many US dollars will you receive in 6 months? Foreign Currency Spot Date Current Spot Rate in European Terms (FX per One USD) Pair Six - Month Forward Rate in European Terms (FX per One USD) 1/1.2120= EUR 0.8251 6M FWD = 1.2120 + 0.00456= 1.2167 per USD EUR/USD 2/13/2021 1/1.2167 = EUR 0.8219 per USD Based on the data above, answer the following questions: + a) At the current spot rate how much in the foreign currency are you owed in 6 months? 1 b) Assuming you fully hedge your FX exposure in the forward market, how many US dollars will you receive in 6 months
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