Question
I am a US wine exporter who is exporting wine to Portugal worth 100,000 and the amount is due in one year. I want to
I am a US wine exporter who is exporting wine to Portugal worth 100,000 and the amount is due in one year. I want to hedge my euro receivables using a money market hedge and obtain the following quotes from my banker.
Bid Ask Spot rate is $1.3000 $ 1.3100 per .
The Portugese interest rates are 4 % - 4.6 % annually and the US interest rates are 3.1 3.6 % annually.
Using a money market hedge and bid-ask spreads, what are my receivables in dollars in one year (rounded)?
| a. | $129,124 | |
| b. | $124,283
| |
| c. | $128,136
| |
| d. | $129,599
|
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Micro Entrepreneurship And Micro Enterprise Development In Malaysia Emerging Research And Opportunities
Authors: Abdullah Al Mamun , Mohammad Nurul Huda Mazumder, Noor Raihani Zainol, Rajennd Muniady
1st Edition
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