Question
If a US-based company that imports and exports goods, is expecting to receive a cash inflow amount of EUR 2,230,500. The transaction date is said
If a US-based company that imports and exports goods, is expecting to receive a cash inflow amount of EUR 2,230,500. The transaction date is said to be on November 10, 2022
Taking into consideration, that there are many different hedging strategies that exist to manage foreign exchange risks and currency risks, How much will the cash inflow/sales proceeds of the company be (in USD) if they choose to:
1. Remain unhedged
2. Use Money Market Hedge
3. Use currency derivatives such as futures to hedge
4. Use currency derivatives such as forwards to hedge
5. Use currency derivatives such as options to hedge
6. Hedge using currency swaps
Note For the calculations of different hedging strategies, kindly include screenshots from where the used rates were taken from, as well as links for any source of the secondary data and information. Thanks
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