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IcKesson Limited (U.S. based MNC) needs to invest three million Turkish lira in its urkey subsidiary to support local operations. McKesson Limited would like its

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IcKesson Limited (U.S. based MNC) needs to invest three million Turkish lira in its urkey subsidiary to support local operations. McKesson Limited would like its ubsidiary to repay Turkish lira in one year. To hedge the exchange rate risk from this inancing support, McKesson Limited would like to engage in a swap transaction nvolving a forward contract. Thus, McKesson Limited would: convert dollars to Turkish lira in the spot market today and convert dollars to Turkish lira in one year at the prevailing spot rate. convert dollars to Turkish lira in the spot market today and convert Turkish lira to dollars in one year at today's forward rate. convert Turkish lira to dollars in the spot market today and convert Turkish lira to dollars in one year at today's forward rate. convert dollars to Turkish lira in the spot market today and convert Turkish lira to dollars in one year at the prevailing spot rate

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